The World Bank has told the newly-elected Kenyan government that it is keen to resume lending to help it bridge a big budget short fall.

We need assistance very urgently David Mwiraria Kenyan finance minister

The favourable comments came as the Bank's vice-president for Africa, Callisto Madavo, visited the capital Nairobi.

"We are very keen to see the building of this relationship and for us to provide the new administration with strong support as you begin the long journey to save your people," Mr Madavo said.

But he did not give a date for when lending could resume.

Budgetary aid to Kenya was halted in 2001 due to concerns over corruption in the government of former President Daniel arap Moi.

The offer comes as new finance minister David Mwiraria said the budget deficit was double that projected by the last government in June.

Deficit blow-out

"We need assistance (loans) very urgently," he said.

The deficit is 57bn shillings ($740m), up from the 32bn shillings forecast for June 2003.

Mr Mwiraria said the increase was due to lower-than-expected tax collections and heavy borrowing on the local money markets to cover spending.

The new government has also introduced a free primary school programme which has added to its costs.

New government

President Mwai Kibaki's government swept to power in December, ending the 39-year rule of Mr Moi and his KANU party.

The NARC government has promised to pass anti-corruption legislation, a key World Bank demand, when parliament reconvenes later this month.

The International Monetary Fund has also said it would resume lending, which it suspended in December 2000 also over corruption concerns, if the legislation is passed.

The privatisation of state-run firms is another key condition for the resumption of aid.

Despite suspending fiscal support, the Bank has 12 on-going projects in Kenya worth $700m.