Afreximbank Launches $3B Country Programme In Kenya

African Export-Import Bank (Afreximbank) on 2 May 2023 in Nairobi signed a US$3 Billion Country Programme with the Government of Kenya. The official signing ceremony was witnessed by President William Ruto at State House Nairobi.

The memorandum was signed by Kenya’s Cabinet Secretary of the Ministry of National Treasury and Economic Planning, Professor Njuguna Ndungu, and the President and Chairman of the Board of Directors of Afreximbank, Professor Benedict Oramah, in the presence of President William Ruto. The memorandum establishes a framework for the implementation of the Country Programme for the Republic of Kenya.

The three-year Country Programme of up to US$3 billion will support viable trade and trade-related investments in Kenya in both the private and public sectors. The financing package will be implemented using several instruments, including loans, guarantee facilities, trade services, investment banking and advisory services.

Kenya will be the first country to access Afreximbank’s recently introduced Climate Change Adaptation Facility to be implemented as a component of the country programme, with an US$800 million Kenya Climate Change Adaptation Facility (KCCAF). This will be directed towards developing 200 irrigation schemes under a public-private partnership framework using structures that are budget and sovereign-debt-neutral.

In addition, Afreximbank will support Kenya’s industrialization and export-led development agenda by financing the development and operationalization of Special Industrial Zones to strengthen the country’s export manufacturing. The Bank will also support Kenya National Trading Company (ETC), 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.

Furthermore, funds committed by Afreximbank under the Country Programme will be directed towards the development of modern infrastructure and facilities and to upgrading existing infrastructure. Afreximbank will support a further deepening and expansion of the Kenyan banking industry by expanding its lines of credit and other product offerings to Kenyan banks to equip them with the muscle to support the local economy.

The Bank will support Kenya’s post-COVID-19 pandemic economic recovery and its ability to cope with shortages and high commodity prices due to the impact of the ongoing Ukraine Crisis.

Speaking during the signing ceremony, His Excellency Dr William Ruto, President of the Republic of Kenya, said that the 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 (PAPSS) towards adopting the platform in order to minimize currency challenges and bottlenecks in trade on the continent,” President Ruto said.

The President added that the government would support the development of SEZs by helping build infrastructure and providing the opportunity to grow jobs and address challenges of youth unemployment.

‘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 AFCTA 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 the president.