THE WORLD BANK IBRD IDA I WORLD BANKGROUP BOUTHEINA GUERMAZI Director, Regional Integration Africa and Middle East and North Africa Date: C;\ 1K )37 Prof. Njuguna S. Ndung'u Cabinet Secretary The National Treasury and Economic Planning Treasury Building Nairobi, Kenya Dear Prof. Ndung'u Re: Republic of Kenya - DRDIP MDTF Grant No. TFOA 7762 Kenya Development Response to Displacement Impacts Project Additional Financing Amendment No. 2 to the Grant Agreement We refer to the Grant Agreement dated January 30, 2019, between the Republic of Kenya (the "Recipient") and the International Development Association (the "Association") acting as administrator of the Kenya Development Response to Displacement Impacts Project Multi-Donor Trust Fund, as amended (the "Grant Agreement"), for the Kenya Development Response to Displacement Impacts Project Additional Financing (the "Project"). We further refer to the second additional financing (the "Additional Financing II") recently approved by the Association on February 22, 2023 for the Project, and to the letter from the Principal Secretary of the National Treasury and Economic Planning, dated November 8, 2022, requesting for an extension of the Grant Closing Date. Accordingly, we are pleased to inform you that the Association hereby proposes to amend the Grant Agreement as follows: 1. Section 3.01 of Article III of the Grant Agreement is hereby amended and restated as follows: WORLD BANKGROUP Prof. Njuguna Ndung'u "3.01. The World Bank agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant in the following amounts, which in the aggregate do not exceed eleven million five hundred and eighty thousand United States Dollars ($11,580, 000) ("Grant"): (a) an amount not to exceed eight million one hundred and eighty thousand United States Dollars ($8,180,000); and (b) an amount not to exceed three million and four hundred thousand United States Dollars ($3, 400, 000) to assist in financing the Project. " 2. Section I.B.1.(a) of Schedule 2 to the Grant Agreement is hereby amended to read as follows: "a. The Recipient shall, not later than March 31, in each calendar year during Project implementation, prepare and furnish to the World Bank, a program of activities proposed for inclusion in the Project during the following fiscal year, including: (i) a detailed timetable and budget for the sequencing and implementation ofsaid activities, setting forth the proposed amounts and sources of financing - including the portion of the Counterpart Funds to be made available in that year; (ii) the types of expenditures required for such activities; and (iii) the planned procurement methods for the expenditures ("Annual Work Plan"). " 3. The disbursement table set forth in Section IV.A.2 of Schedule 2 to the Grant Agreement is hereby amended and restated as set forth in the annex to this letter of amendment (the "Amendment Letter"). 4. The Closing Date set forth in Section IV.B.2 of Schedule 2 to the Grant Agreement is hereby amended and restated as June 30, 2023. 5. The Appendix to the Grant Agreement is hereby amended by adding the following definitions, and the rest of the definitions renumbered accordingly: i. "Additional Financing II" means the amount not to exceed three million and four hundred thousand United States Dollars ($3, 400, 000) made available or proposed to be made available from the proceeds of the Grant to finance activities under Parts 1(a) and 4 of the Project. ii. "Counterpart Funds" means a minimum amount offunds required for the Project, estimated at the sum of one million United States Dollars (USD 1, 000, 000), to be provided by the Recipient, through an allocation to the budget for each Annual Work Plan. 6 WORLD BANKGROUP Prof. Njuguna Ndung'u The capitalized terms used in this Amendment Letter and not defined herein have the meaning ascribed to them in the Grant Agreement. Except as specifically amended herein, all other provisions of the Grant Agreement remain in full force and effect. Please confirm your agreement, on behalf of the Recipient, to the amendments and revisions mentioned above by countersigning and dating the two original copies of this Amendment Letter and returning one countersigned and dated original to the Association. Upon receipt by the Association of the countersigned and dated original copy, this Amendment Letter shall become effective as of the date of the countersignature. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION outheina ermazi Director of Regional Integration Africa, Middle East and North Africa CONFIRMED AND AGREED: REPUBLIC OF KENYA Name:______ Title: Date: WORLD BANKGROUP Prof. Njuguna Ndung'u Annex KENYA DRDIP MDTF Grant No. TF0A7762 Revised Disbursement Table Category Amount Grant Allocated Percentage of (expressed in USD) Expenditures to be Financed (inclusive of Taxes) (1) Goods, works, non- 11,580,000 100% consulting services, and consulting services, Operating Costs and Training under the Project TOTAL AMOUNT 11,580,000 WORLD BANKGROUP