- The three-year $3 billion programme will support viable trade and related investments in Kenya in both private and public sectors.
- It will be implemented using loans, guarantee facilities, trade services, investment banking and advisory services.
- The financing will also go to the creative arts sector through the Kenyan government’s youth empowerment programme.
The Afreximbank is rolling out a $3 billion program aimed at spurring Kenya’s economic growth. The three-year programme by the African Export-Import Bank will support viable trade and trade-related investments in Kenya’s private and public sectors.
The financing will be implemented using several instruments including loans, guarantee facilities, trade services, investment banking and advisory services.
The memorandum was signed on 2 May 2023 in Nairobi by National Treasury Cabinet Secretary Professor Njuguna Ndungu alongside Afreximbank Chairman Professor Benedict Oramah in the presence of President William Ruto.
Digitise government services
“This programme is a step forward in our economic recovery agenda and will assist the government following shocks occasioned by the COVID-19 Pandemic as well as the global economic crisis. We intend to leverage e-commerce and e-jobs as we digitise government services. We also aim to reduce pressure on our FX reserves. I also pledge my support for the Pan African Payment and Settlement System towards adopting the platform in order to minimize currency challenges and bottlenecks in trade on the continent,” said President Ruto.
“Following a series of discussions between the bank and the National Treasury and Economic Planning, we are pleased that we have agreed on the broad framework for the country programme. This simple signature ceremony sets the framework for the execution of the development programmes and priorities contained in the “Kenya PLAN: The Bottom-Up Economic Transformation Agenda 2022 – 2027”.
I am glad that we are now delivering on our promise,” Afreximbank Chairman Professor Benedict Oramah said during the signing.
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Steady Financial Support
Kenya will be the first country to access Afreximbank’s recently introduced Climate Change Adaptation Facility. This will be rolled out as a component of the country programme with a $800 million Kenya Climate Change Adaptation Facility.
About 200 irrigation schemes under a public-private partnership framework are in the pipeline using structures that are budget and sovereign-debt-neutral.
In addition, Afreximbank will support set up Kenya’s Special Industrial Zones to strengthen the country’s export manufacturing.
Growth of SMEs
The Bank will also support Kenya National Trading Corporation to become a fully-fledged Export Trading Company, which will facilitate the emergence of an integrated national value chain and foster the growth of SMEs through improved access to finance and national and regional markets.
Development and upgrading of modern infrastructure will also be a key target of Afreximbank funding.
The programme will see Afreximbank further deepen Kenyan banking industry by expanding its lines of credit and other product offerings to Kenyan lenders, offering them muscle to support the local economy.
On post-COVID-19 pandemic economic recovery, the lender will back Kenya’s ability to cope with shortages and high commodity prices due to the impact of the ongoing war in Ukraine.
“We will further support the SME ecosystem with the launch of phase two of the hustler fund this month and further encourage SMEs to tap into the AfCFTA agreement to access markets. On Agriculture, the facility will be beneficial in bringing down the cost of fertilizer and other essential commodities that are very critical to further bring down the cost of living in the country,’’ added President Ruto.
Youth empowerment
Dr Ruto said the government would support development of industrial hubs by helping build infrastructure and providing the opportunity to grow jobs and address challenges of youth unemployment.
Other critical areas of intervention of the country programme include supporting the creative arts sector through the Kenyan government’s youth empowerment programme, as well as supporting and stimulating regional and intra-African trade through capacity building of Kenyan enterprises to improve their ability to compete under the African Continental Free Trade Agreement (AfCFTA) framework.
“The Country Programme for Kenya is designed to help build a strong infrastructure base, catalyse agriculture and industrial growth as well as create a well-diversified, integrated, and resilient national economy that benefits all segments of society and prepares the public and private sectors to better take advantage of opportunities arising from the African Continental Free Trade Agreement (AfCFTA),” Omarah noted.
