Kenya receives Sh400B loan from the African Export-Import Bank

The Government of Kenya has entered into a financing programme with the African Export-Import Bank (Afreximbank) worth Sh400 billion.

The loaned signed on Tusday evening May 2, is aimed at supporting the Bottom Up Economic Transformation Agenda.

The three-year programme was signed by Treasury Cabinet Secretary Njuguna Ndung’u on behalf of Kenya, and Afreximbank President Benedict Oramah on behalf of the bank, and witnessed by President William Ruto at State House.

Treasury CS Njuguna Ndung'u signing a Sh400 billion loan with the AfriExim bank at State House on May 2, 2023 Treasury CS Njuguna Ndung'u signing a Sh400 billion loan with the AfriExim bank at State House on May 2, 2023 Pulse Live Kenya

“AfriExim came in handy and supported our recently concluded fuel importation deal; this eased pressure on our foreign reserves,” the president said.

According to Prof. Oramah, the programme will support the government's priorities in various sectors.

The facility is also expected to enhance the capacity of Kenya National Trading Corporation in meeting its obligations to import affordable fertilisers, dry commodities and edible oil.

During the signing ceremony, President Ruto highlighted the importance of the financing programme in supporting the construction of 200 dams for Sh110 billion that will provide water for irrigation, domestic use, and livestock.

He noted that with the deteriorating water levels due to climate change, it is essential to maximise water harvesting.

The programme will also support the government's industrialisation efforts, including the development of industrial parks and five special economic zones in Nakuru, Busia, Kirinyaga, Thika, and Eldoret.

Additionally, it will focus on priorities such as SMEs and the digital superhighway, as well as stabilising the market.

President William Ruto and AfriExim President Benedict Oramah at State House on May 2, 2023 Pulse Live Kenya

President Ruto welcomed Afreximbank's initiative on Pan African payment systems, which will enhance Africa's contribution to global trade which has stagnated at less than 3% for some time.

Oramah, on the other hand, praised President Ruto for his passion for the country and his clarity of thought.