Kenya gets Sh9.5b loan from AfDB
By John Otini, May 5, 2023
Kenya has secured €63.0 million (Sh9.5 billion) loan from Africa Development Bank (AfDB) to increase agricultural production and improve food security. The loan agreement was signed in Nairobi by National Treasury Cabinet Secretary Njuguna Ndung’u (pictured) and Nenna Nwabufo, AfDB’s Director-General, East Africa Regional Development and Business Delivery Office.
“Today, I signed a Euro 63 million loan agreement with, CS, Prof. Njuguna Ndung’u, for the Kenya Emergency Food Production Facility (AEFPF-K) to increase agricultural productivity and improve food security in Kenya.,” said Nwabofu.
Kenya has in the last few days received funding from AfreximBank and now AfDB in what appears to be Africa’s institutions responding to the cash crisis in African countries.
Food security
The emergency food production facility is aimed at enhancing food security and improving access to water for communities affected by drought and other climate-related shocks.
It will support the development of irrigation schemes, the construction of water harvesting structures, and the provision of drought-resistant seeds and other agricultural inputs.
The loan comes at a critical time for Kenya, which has been grappling with the impact of climate change and other environmental challenges.
Kenya has experienced recurrent droughts in recent years, which have resulted in food shortages and reduced agricultural productivity.
The funding from AfDB is expected to boost the country’s liquidity prospects and strengthen its ability to weather economic shocks.
This agreement comes just a few months after the country secured a $3 billion loan from the African Export-Import Bank (Afrexim Bank), which is intended to support the country’s post-pandemic recovery efforts.
Signing ceremony
Speaking at the signing ceremony, Ndung’u expressed appreciation for the support from AfDB, saying that the loan would help the government achieve its goal of ensuring food security and enhancing agricultural productivity.
He also noted that the government was committed to responsible borrowing and would use the funds prudently to achieve maximum impact.