Kenya buys shares in powerful European bank, here's how much it cost taxpayers

Kenya has officially become a shareholder of the European Bank for Reconstruction and Development (EBRD), completing a year-long process.

The move unlocks significant new financing avenues for the country, aimed at bolstering its private sector, advancing its green energy transition, and attracting foreign investment.

The EBRD’s Board of Governors announced Kenya's formal entry on July 28, making it the latest African nation to join the London-headquartered multilateral institution. 

The final step followed the approval of the accession treaty by Kenya's National Assembly on June 24, 2025, which authorised the government to finalise the membership requirements.

Kenya's journey to membership began in early 2024. The Cabinet approved the application on February 14, 2024, leading to a formal submission by the National Treasury. 

The EBRD's Board of Governors responded swiftly, adopting Resolution 271 on May 16, 2024, to approve Kenya's membership in principle, subject to the completion of domestic legal and financial conditions.

In a statement, EBRD President Odile Renaud-Basso welcomed Kenya to the bank.

I am delighted to welcome Kenya and Senegal as shareholders of the Bank. This is a pivotal step towards beginning our investments in sub-Saharan Africa, and we are committed to starting work in the region this year. 

Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, said the development marked a significant milestone in the country’s deeper integration into the global financial system and reflected renewed international confidence in Kenya’s macroeconomic direction and reform agenda.

We view this as a partnership that will strengthen our development institutions, enhance investors’ confidence and support the delivery of transformative programmes that benefit all Kenyans

Under the terms of the agreement, detailed in a report by the National Assembly Departmental Committee on Finance and National Planning, Kenya will subscribe to 203 shares of the bank's capital stock. 

This includes an initial paid-in capital contribution of €370,000 for 37 shares, with an additional 166 shares designated as callable capital. 

Kenya will be required to pay a subscription of 203 shares, of which 37 are paid-up shares with a total cost of EUR 370,000 (Approx. Sh61 million at Sh165.30-CBK rate as of 17/11/2023). 166 shares are callable.

Callable shares means the Kenya doesn't have to pay for them immediately, but may need to in the future if called upon.

This shareholding grants Kenya representation on the EBRD’s Board of Governors, providing a voice in the bank's strategic decision-making processes.

Membership obligates Kenya to uphold the bank's mandate, which, according to Article 1 of its founding treaty, is to "foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiatives" in countries committed to multiparty democracy and pluralism.

READ ALSO: Nigerian bank that acquired 14 African banks, including 2 in Kenya [LIST]

The accession is a cornerstone of the EBRD’s limited and incremental expansion into Sub-Saharan Africa, a strategy approved at its 2023 Annual Meeting in Uzbekistan.

The bank identified Kenya, alongside Benin, Côte d’Ivoire, Nigeria, and Senegal, as initial countries of engagement, with Ghana's membership pending. 

This expansion reflects the growing economic ties between the EBRD's traditional regions of operation and Africa.

For Kenya, joining the EBRD is seen as a strategic move to diversify its sources of development finance. 

Submissions from the National Treasury to Parliament highlighted the synergy between the EBRD's operational focus and the government’s core pillars, particularly in agriculture, support for Micro, Small, and Medium Enterprises (MSMEs), and the digital economy.

The Hon. Kuria Kimani, Chairperson of the Finance and National Planning Committee that steered the treaty's ratification, noted in the committee’s report that the agreement aligns with Kenya’s constitutional values.

 "The Agreement aims to foster the transition towards open market-oriented economies and promote private and entrepreneurial initiatives in countries committed to applying the principles of multiparty democracy, pluralism and market economies," he stated.

The bank is expected to channel investments into several key areas:

• Private Sector Growth: Providing loans, equity, and guarantees to private companies, with a special focus on SMEs.

• Green Transition: Financing renewable energy projects, climate resilience infrastructure, and sustainable agriculture, supporting Kenya's goal of becoming a leader in the green economy.

• Infrastructure: Investing in sub-sovereign projects with municipalities and commercially-run state-owned enterprises to improve essential services.

• Capital Markets: Offering technical assistance and investment to deepen local capital markets and promote local currency financing.