Kenya to buy Sh19 billion shares in 2 banks

Kenya has committed an additional $100 million (about Sh13.2 billion) to the Trade and Development Bank (TDB), in a strategic push to strengthen African-led financial institutions and reduce reliance on Western lenders.

President William Ruto made the announcement on Wednesday, October 9, 2025, during his acceptance speech as Chair of the Common Market for Eastern and Southern Africa (COMESA) at the 24th Heads of State and Government Summit in Nairobi.

Ruto stated that the investment will increase Kenya’s shareholding in the regional bank and open the door to long-term, low-cost financing that could drive major development and infrastructure projects.

“Having already committed $50 million as share capital to Afreximbank, we are now making an additional $100 million investment to enhance our shareholding in TDB,” President Ruto said.

Through our participation, Kenya can now access long-term facilities of up to 25 years at interest rates as low as 2%.

A Strategic Shift from Western Lenders

The move is part of Kenya’s broader plan to back homegrown African financial institutions like TDB, Afreximbank, Shelter Afrique and the African Trade and Investment Development Insurance (ATIDI).

Ruto said such institutions give African countries more control over their economic destiny and offer financing terms that reflect their realities and priorities, unlike traditional Western lenders such as the IMF and World Bank, which he described as trapped in the architecture of a bygone era.

“These African-led banks are proving to be true partners in progress,” Ruto added.

The TDB was established under the Preferential Trade Area (PTA), the precursor to COMESA, and has grown to become the bloc’s financial arm, funding trade, investment and development projects across the region.

By boosting its stake in TDB, Kenya positions itself to access cheaper and longer-term loans, a significant advantage at a time when public debt and financing costs have become a pressing concern.

The $100 million capital injection aligns with President Ruto’s debt restructuring and economic growth agenda, aimed at reducing dependence on expensive short-term borrowing.

COMESA Leadership and Vision

Ruto’s announcement came as he officially took over the COMESA chairmanship from Burundi’s President Evariste Ndayishimiye.

His inaugural speech outlined a bold vision for a digital, connected, and economically self-reliant Africa, calling for deeper regional financial and trade integration.

He also reaffirmed Kenya’s decision to drop visa requirements for most African countries, saying “Africa’s strength lies in its openness and unity.”

Ruto also stated that Africa should compete in global value chains, not just as a supplier of raw materials, but also as a producer of finished goods and technology-driven solutions.

“For far too long, Africa has been a passive recipient and consumer of technology. The time has come for us to become producers, innovators, and exporters of digital solutions, shaping our own economic destiny,” he said.

The head of state said Africa must leverage digitalisation to deepen regional value chains, integrate supply chains, and connect entrepreneurs, farmers, and manufacturers to markets without bottlenecks.

He called for massive joint investments in digital infrastructure, including modern transport corridors, secure cloud services, interoperable cross-border payment platforms, and harmonised regulatory frameworks.