Kenya has received €188 million (Sh22 billion) from African Development Bank (AFDB) to support the government’s efforts to respond to the COVID-19 pandemic and mitigate the related economic, health and social impacts.
This follows a request by President Uhuru Kenyatta’s administration, as part of its Emergency Response intervention to help contain the scourge that has since seen over 1100 people infected in the country since mid-March.
According to the continental lender, the facility will extend additional resources to Kenya as the country takes steps to contain the spread of the pandemic and deal with its unprecedented impact.
“We are very pleased to join other development partners in supporting Kenya’s efforts in mitigating the financial impact of the pandemic, especially in terms of the country’s expenditure in the health, social and economic sectors,'' AFDB Acting MD for East Africa, Nnenna Nwabufo said.
He added that the next step will focus on helping build resilience for post-COVID-19.
The bank said it is placing significant pressure on an already stretched healthcare system. It has disrupted supply chains and caused job losses in the tourism, hospitality, horticulture and airline industries, among others.
''As a result of demand and supply shocks, Kenya’s real GDP growth is projected to fall to between 0.6 and 1.4 per cent from the initial 2020 projection of six per cent,’’ AFDB said.
In April, the Bank extended an emergency grant to help countries in the East and Horn of Africa, including Kenya, that are contending with swarms of locusts that are threatening food security.
AFDB’s credit is coming just days after World Bank approved a $1 billion (Sh106 billion) concessional credit line for the country to mitigate and shield the economy from ravages of the virus that is causing mayhem across the world.
A week earlier, the International Monetary Fund (IMF) had disbursed $739 million (Sh79 billion) Rapid Credit Facility to help the country cover the balance of payments shortfalls this year and perhaps cushion the weakling shilling that currently trades above 106 units against the greenback.
