India’s Exim Bank is set to start operations in Kenya, Prime Cabinet Secretary Musalia Mudavadi has announced.

In a statement, the Press Service Director in the Office of the Prime Cabinet Secretary Salim Swaleh said the request to have the lender start operations in Kenya was approved during a cabinet meeting held on Monday, November 27, 2023.

“The Government of Kenya acceded to the request of India Exim Bank to locate its East Africa Representative Office in Nairobi. In a Cabinet Meeting held on Monday, November 27th, 2023, the request was considered and approved thus paving way for the legal process which will lead to India Exim Bank commencing operations in Kenya,” Swaleh stated.

The bank, a financial institution fully owned by the Government of India, provides concessional lines of credit to developing countries, including Kenya.

“India Exim Bank has previously provided financial support to Kenya in respect to development projects in the energy, textile and apparel and agricultural sectors and small and medium scale enterprises. The establishment of India Exim Bank in Nairobi is a confirmation of the confidence in Kenya and the competitive edge of Nairobi as a regional financial hub,” Swaleh added.

Exim Bank to create employment

Swaleh says the establishment of the lender in Kenya will create employment opportunities for Kenyans and deepen their skills in the sector.

Also, he says collaboration between Kenya and the lender will support national development priorities.

“Therefore, its physical presence in Nairobi will greatly enhance interaction with Kenya and other regional countries. In addition, it will enhance financial cooperation between India and African countries, especially Kenya,” he added.

Mudavadi says the bank will provide financial support to Kenya with respect to development projects in the energy, textile and apparel and agricultural sectors and small and medium-scale enterprises.

“The establishment of India Exim Bank in Nairobi is a confirmation of the confidence in Kenya and the competitive edge of Nairobi as a regional financial hub. In the short-term, the Bank will create employment opportunities for Kenyans and deepen their skills in the sector. In the long-term, collaboration between Kenya and the Bank will support national development priorities,” Mudavadi added.