Kenya to get Sh9b from the French

In Summary

•Over the past two years, Kenya has been receiving the biggest chunk of financial flows from Proparco accounting for 50 per cent of the total commitment made.

•The lender plans to increase its investments to East Africa this year to sh18.12 billion from Sh13.59 billion last year. 

Solar panels.
Solar panels.

Proparco, the financial arm of the French Development Agency plans to inject €80 million (Sh9.06 billion) in the country through direct and indirect investments.

The financier, who offers capital in debt through credit lines to banks and in equity, said it will increase its financial commitment to East Africa to €160 million (Sh18.12 billion) this year compared to 120 million (Sh13.59 billion) injected annually in the past two years.

Over the past two years, Kenya has been receiving the biggest chunk of financial flows from Proparco, accounting for 50 per cent of the total commitment made.

“We are planning much more this year with a target of €160 million for private sector activity and an additional €60 million worth of projects in the social sector from the French Development Agency (AFD),” Proparco regional head for East Africa Jean-Benoit Du Chalard said yesterday.

The French lender has so far disbursed €850 million (Sh95.41 billion) across the region in 52 projects. At least 25 of these projects are in Kenya valued at €475 million (Sh53.79 billion).

Proparco focuses its support on infrastructure projects, especially for energy and transport, developing agriculture and the agro-industry, strengthening banking systems and the productive sector- particularly SMEs.

Visiting French President Emmanuel Macron announced that up to 10,000 African start-ups and small businesses will receive financial and technical support to the tune of Sh282.5 billion (€2.5 billion) under the Choose Africa campaign.

Of this, the AFD will offer businesses €1 billion through equity investment and a further €1.5 billion through credit lines at local banks.