Kenya receives Sh400 billion from AfriExim Bank

Kenya has received Sh400 billion from the African Export-Import Bank.

This is after Kenya and the AfriExim Bank on Tuesday signed a three-year financing programme at a ceremony witnessed by President William Ruto at State House Nairobi.

Treasury Cabinet Secretary Njuguna Ndung'u signed the deal on behalf of Kenya while AfriExim President Benedict Oramah signed for the bank.

"The programme has seven pillars and will support the government's priorities, including importation of critical commodities, water harvesting, construction of industrial parks and investment in the digital superhighway," Oramah said. 

Ruto thanked AfriExim Bank for completing the country program 'in a record four months.'

He said that even before it was signed, the bank enabled the country to import critical commodities such as oil, fertiliser and food items.

"AfriExim supported our importation of oil thus enabling Kenya oil marketing companies to pay for the product in Kenya shillings. This has eased pressure on our foreign reserves," Ruto said.

He said the programme's facility will also support the capacity building of the Kenya National Trading Corporation as the vehicle for importing fertiliser, grains and edible oil.

"This support in importations has been critical in helping us reduce the cost of basic goods, including unga that has reduced from Sh230 to between Sh155 and Sh180,"  Ruto said.

In the programme, Ruto said Sh110 billion will be spent on the construction of 200 dams by the private sector to provide water for irrigation, domestic use and livestock.

"With the deteriorating water levels due to climate change, it is key that we harvest water and build dams for storage," he said.

The Head of State said the AfriExim programme will also support the government's industrialisation efforts, especially the development of five special economic zones and industrial parks in each county, SMEs, the digital superhighway and liability management due to global economic shocks.

"With the AfriExim programme, the National Treasury and Central Bank should be able to calm the markets. If there were people who doubted our capacity to manage the country's economic situation, they should now rest easy," Ruto said.

Oramah said in the process of preparing the programme, Ruto has shown "passion for country and clarity of thought."