The CBK governor explained that the external shocks are largely linked to disruptions in global supply chains and rising commodity prices, particularly fuel.
These developments, he said, have placed additional pressure on the country’s economy, already grappling with inflation and a high cost of living.
“We are engaging with the World Bank to see what support can be provided to help us manage the situation,” Thugge said, without giving further details on the size or structure of the potential funding.
Economists say geopolitical tensions, especially those involving major oil-producing regions, often lead to volatility in energy prices.
For Kenya, which relies heavily on imported fuel, such fluctuations can have a significant impact on inflation, transport costs and the overall cost of goods and services.
The effects are already being felt across various sectors, with businesses and consumers facing increased expenses.
Transport operators have cited higher fuel costs as a key challenge, while manufacturers warn of rising production costs that could be passed on to consumers.
The government has in recent months been implementing measures aimed at stabilising the economy, including monetary policy adjustments and efforts to strengthen foreign exchange reserves.
However, officials acknowledge that external factors continue to pose a significant risk.
Thugge noted that support from development partners such as the World Bank could help cushion the country against these shocks by providing budgetary support and enhancing economic resilience.
Such funding is often used to stabilise key sectors and maintain essential services during periods of economic strain.
Analysts observe that Kenya’s move to seek financial backing reflects broader concerns among emerging economies facing similar challenges due to global instability.
They note that international financial institutions play a critical role in supporting countries during periods of uncertainty.
While the exact terms of the potential support remain unclear, any agreement would likely involve conditions aimed at ensuring fiscal discipline and promoting sustainable economic management.