Finance

Kenya signs $3bln loan facility with Africa’s trade finance bank

Kenya has signed a 369.9 billion shillings ($3 billion) programme from African Export-Import Bank (Afreximbank), a pan-African multilateral trade finance institution, to strengthen the country’s infrastructure, The Kenyan Wall Street newspaper reported.

A technical team from the Kenyan government and Afeximbank will start working on the support structure.

A large portion of the package will be dedicated to establishing a Kenya climate change adaptation facility.

Afreximbank will arrange 98.64 million shillings in financing towards building 100 dams, which will help the East African nation to double its irrigated area in regions experiencing water shortages.

Kenya aims to double the land area under irrigation from the current 670,000 acres to 1.4 million acres in the next three years, improving its food production and easing overdependence on rain-fed agriculture.

Kenya President William Ruto said the package will allow the country to expand its engagement with Afreximbank on several investment areas such as infrastructure, agriculture, commercial irrigation, housing and micro, small and medium enterprises ecosystem. 

Afreximbank Chairman Benedict Okey Oramah added that the institution’s climate change adaptation facility aims to disburse over 616.5 billion shillings in the five years to 2026 under its sixth strategic plan.

(Editing by Seban Scaria seban.scaria@lseg.com)

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