Listen to This Article Enhance your reading experience by listening to this article.

Kenya will receive a $3 billion (Sh360 billion) loan from African Export-Import Bank (Afreximbank) under the bank’s Country Programme to fund infrastructure and climate change programmes.

Afreximbank chairman Benedict Oramah said $800 million (Sh96 billion) will be used to construct 100 dams to curb water shortage and improve irrigation schemes, especially in regions impacted by climate change.

Kenya plans to double the land area under irrigation from the current 670,000 acres to 1.4 million acres in the next three years to improve food production, while reducing its reliance on rain-fed agriculture.

Investment ares

“This (funds) will allow us to expand our engagement with Afreximbank on several investment areas such as infrastructure, agriculture, commercial irrigation, housing, the creative industry, and the micro, small and medium enterprises ecosystem,” President William Ruto said after a meeting with Afreximbank Oramah. A technical team drawn from the Kenyan government and Afreximbank is expected to begin working on the structure of the support programme. Afreximbank will disburse over $5 billion (Sh600 billion) in the next 5 years to 2026 under its Climate Change Adaptation Facility. 

“We stand ready to kick-start this exciting programme with the Government of Kenya and promote climate-smart agriculture in Kenya. Our project preparation and technical teams will work with the Kenya government team on this project to develop a robust model and structure that will attract investors,” said Oramah.

Industrial parks

The programme will also encompass support for the development and operation of industrial parks to enhance the manufacturing and value-addition sectors. The bank has also extended the Africa Exchange Trade e-commerce platform (ATEX) for commodities to Kenya. The platform allows member states to integrate regional suppliers at favorable costs.