Tuesday July 23 2024
The lender’s funding to the country started peaking in 2013.
Kenya tops the East and Central African region as the biggest beneficiary of funding from the African Development Bank (AfDB) over the last decade.
Data from the pan-African lender shows that AfDB approved a total of $3.718 billion (UA2.77 billion) to Kenya between 2013 and 2023 followed by $2.83 billion (UA2.11 billion) to neighbouring Tanzania and a further $1.81 billion (UA1.35 billion) to Rwanda.
UA (Units of Account) is the currency of trade that AfDB uses and its exchange rate with the dollar varies over time. For example, last year one UA was equivalent to $1.3416.
Sectors such as energy, road construction, and water have been some of the biggest beneficiaries of the billions of dollars from AfDB, making the pan-African lender an integral development partner of Kenya.
“Approvals for East Africa amounted to UA 2.29 billion, or 29 percent of total approvals, a substantial increase of 37 percent over the UA 1.67 billion in 2022,” AfDB says in its annual report for last year.
Some of the big projects that AfDB has funded in Kenya include the 300-megawatt Lake Turkana Wind Power Project —the biggest wind farm in Africa, the ongoing Last Mile Connectivity electricity project, and the Sh16.7 billion dualing of the Kenol-Sagana-Marua Road.
Read: AfDB wants Kenya, Tanzania electricity deals finalised
Kenya, like most other African countries, has over the years increasingly turned to AfDB for billions of dollars to fund projects across different sectors.
AfDB exclusively lends to African countries, with the continent’s shareholding of the bank being 60 percent. The US, Japan, India, and others own the remaining 40 percent.
The lender’s funding to African nations takes the form of grants, loans, guarantees, and a Transition Support Facility meant for weak economies. AfDB is racing to reduce Africa’s dependence on international financiers such as the World Bank and International Monetary Fund (IMF).
AfDB’s funding to Kenya started peaking in 2013 during the administration of former President Uhuru Kenyatta. AfDB currently sits at close ranks to the World Bank and the IMF as key financiers to the Kenyan government.
In 2016, Kenya received $823.26 million (UA612.4 million), making it the country’s most successful year in terms of funding from AfDB.
Kenya joined AfDB in January 1964 and has grown to become one of the top 20-member states.
AfDB’s increased involvement in Kenya’s development agenda has seen several local firms banned for up to three years mainly for corruption and other flawed tactics to secure lucrative tenders.
Some of the firms banned by AfDB in Kenya include Beta Trading Company, Global Interjapan (Kenya) Limited, Eva-Top Agencies, and Madujey Global Services.
Read: AfDB wants Kenya, Tanzania electricity deals finalised
Source link : https://www.theeastafrican.co.ke/tea/business/kenya-top-recipient-of-afdb-funding-in-east-africa-4699878?view=htmlamp
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Publish date : 2024-07-23 12:49:10
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