Kenya receives $3 billion loan for economic support

NAIROBI, Kenya - In a bid to cushion the country from a cash crunch, President William Ruto has turned to the Africa Export and Import Bank (Afrexim Bank) for a $3 billion economic support loan.

Local media reports reveal that the commencement of the disbursement of the mega loan follows approval by the Board of Directors of AfreximBank.

A statement from the National Treasury indicates that the loan will help in managing the economic problems due to global shocks.

“The financing will also support the importation of essential commodities aimed at taming the high cost of living and supporting the country’s post-Covid recovery.

Last year, the Kenya National Trading Corporation (KNTC) was given cabinet approval to spearhead the government’s initiatives to stabilize the cost of essential goods amid a biting drought that had curtailed local food production.

The Afrexim Bank loan will also go into manufacturing and agro-processing export development such as setting up industrial parks and promotion of intra-Africa trade under the African Continental Free Trade Area (AfCFTA)—an initiative of the African Union.

The disbursements come as Kenya, DRC, and Chad became the latest signatories to the Establishment Agreement of the Fund for Export Development in Africa (Feda), the development impact-oriented subsidiary of Afrexim Bank.

“These successive accessions provide positive momentum for Feda and demonstrate a shared commitment from Afreximbank member countries to support the organization’s impact investing objectives. It creates a powerful catalyst to increase equity and equity-like funding for African companies that promote industrialization, Intra-Africa trade, and value-added export development,” Afreximbank revealed in an official communication.

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