The World Bank has announced a major shift in its global operations, with plans to decentralize its management teams and establish regional hubs, including one in Nairobi.
According to Anna Bjerde, the World Bank’s managing director of operations, the move aims to enhance responsiveness to local needs.
Moreover, this means that the World Bank will have its senior managers closer to the countries they serve.
“This latest step in our decentralization marks a significant milestone: for the first time, two-thirds of World Bank Group operations staff will be based in the regions they serve, a testament to our ongoing efforts over the past few years,” the bank stated in an internal email to staff, as detailed by Reuters.
Further, Anna Bjerde, explained that the changes were part of an ongoing effort to streamline operations, improve client accessibility, and enhance service delivery.
The restructuring will impact 11 regional vice presidents from the bank’s key divisions, including the International Bank for Reconstruction and Development, the International Development Association, and the International Finance Corporation, along with various regional directors.
Members of the bank’s executive board were briefed on the restructuring in recent weeks and expressed broad support for the initiative, according to sources familiar with the discussions.
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President Ajay Banga’s Vision for the World Bank
The decentralization strategy has been a priority for World Bank President Ajay Banga since he took office in June 2023.
According to sources who spoke to Reuters, the plan is unrelated to recent policy shifts in the United States led by President Donald Trump over the United States Agency for International Development (USAID).
Although the final locations for the hubs are still being determined, Nairobi has been identified as a likely option. Other locations include Dubai and Singapore.
Factors such as flight connectivity, client proximity, and quality of life for staff are being considered in the selection process.
The first relocations could begin as early as May 2025, with full implementation expected over the following two years.
However, the Latin America and Caribbean team will remain headquartered in Washington, the bank confirmed.
Also Read: Concerns Over Hiking Rent Prices as UN Agency Moves Staff From New York to Nairobi
UN to Expand With Hubs in Nairobi
Earlier in November 2024, Foreign Affairs Principal Secretary Korir Sing’Oei confirmed that land has been allocated for the development of a United Nations Humanitarian and Logistics Hub at JKIA.
Also, additional land had been provided to the UN in other regions, including Dongo Kundu and the Naivasha Special Economic Zone.
He noted that the initiative would be implemented in collaboration with multiple government agencies.
The United Nations Office in Nairobi (UNON) accommodates around 20,000 staff members and their families. However, this number is expected to increase significantly as several UN offices plan to relocate their operations and personnel to Nairobi by 2025.
Meanwhile, concerns have emerged among Kenyans regarding rising rent prices following the announcement that the United Nations Population Fund (UNFPA) would relocate approximately a quarter of its staff from New York to Nairobi.
Journalist Moina Spooner sparked discussions on X in February 2025, suggesting that the number of relocating staff could be in the thousands.
She also questioned whether the move would drive up housing costs while noting that some staff members were apprehensive about being stationed farther from UN headquarters.
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