Kenya Gets another loan of Ksh 9.3B From UK & African Development Bank

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Kenya Gets another loan of Ksh 9.3B From UK & African Development Bank
Kenya Gets another loan of Ksh 9.3B From UK & African Development Bank

African Development Bank and the United Kingdom (UK) have chosen Kenya as the recipient of a Ksh 9.3 billion loan for climate mitigation.

Announcing the allocation on January 19, Nnenna Nwabufo, African Development Bank Director General for East Africa, stated that the money was to be channeled to the government’s last mile and power grid project.

“Kenya is close to achieving universal electricity access with a high component of renewable energy. This represents a major milestone in both sustainable development and the mitigate against climate change,” Fwabo commented.

Termed ‘Transmission Network Improvement Project’, the government budgeted the project at Ksh 18.4 billion only to receive up to half the funds as a concessional loan, a deal that comes with more favourable terms that Kenya can fetch in the market.

The two organisations explained that the funds would enable the government to address existing gaps in energy transmission and achieve universal electricity access.

It will further improve the quality of life of communities in Kenya through enhanced socioeconomic development.

Kenya, as the first country in East Africa to benefit from the program since its inception in 2022, will be joining five other North and West African countries previously selected for the funding.

So far Egypt, Tunisia, Senegal, Mauritius, and Benin have benefited.

The project, which aims at awarding Ksh 317 billion to different African countries, is funded by the United Kingdom and the City of London insurers.

“We’re working together with the AfDB and Kenya to deliver what Kenyans want and need; reliable power for reliable economic growth – all with green energy that protects the prospects of future generations,” the UK high commissioner to Kenya Neil Wigan stated.

It is expected to run up to 2027, with each country signing the loan on its terms.

So far, Kenya has received two batches of loans in 2024, with the International Monetary Fund (IMF) releasing Ksh 150 billion on January 17 and Ksh 33 billion from the Trade and Development Bank on January 19.

By LOISE LENSER

Source-https://www.kenyans.co.ke/

 

Kenya Gets another loan of Ksh 9.3B From UK & African Development Bank

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