Kenya is committing US$100 million to increase its ownership stake in three key African financial institutions: the African Development Bank (AfDB), the African Export-Import Bank (Afreximbank), and the Trade and Development Bank (TDB).
This investment will be spread out over the next three years.
President @WilliamsRuto of Kenya announced $20 million support by Kenya to the African Development Fund. This marks the largest contribution by an African country to the Fund. Thank you very much my dear friend and brother, Mr. President! @AfDB_Group pic.twitter.com/CSCav4TZlk
— Akinwumi A. Adesina (@akin_adesina) June 2, 2024
Kenya has been a significant beneficiary of AfDB funding, particularly in energy, water and sanitation, and transportation infrastructure.
Past projects financed by AfDB include the Thika Superhighway, a major increase in national electricity access (from 27% to 76% in the last decade), and water and sanitation projects in 28 Kenyan towns.
President William Ruto announced this investment at the unveiling of the African Development Bank Group’s new ten-year strategy (2024-2033) in Nairobi.
It is urgent that African integration be deepened to spur increased intra-continental trade. This intervention will accelerate economic growth and generate more productive jobs for millions of our young people.
At the Kenyatta International Convention Centre, Nairobi, for the… pic.twitter.com/omFhGWf2AY
— William Samoei Ruto, PhD (@WilliamsRuto) May 29, 2024
President Ruto highlighted Kenya’s satisfaction with the profits and dividends received from the AfDB and urged other donors and development partners to invest more heavily in these crucial financial institutions.
“Kenya is among the beneficiaries of AfDB financing projects and I am also motivated by the profits and dividends from the Bank. As a country, we therefore call on donors and development partners to scale up their investments in our development financial institutions,” said President William Ruto.
President William Ruto says that over the next 3 years, Kenya will pump US$100.0M in enhancing its shareholding in Africa Development Bank (AfDB), Afrexim Bank & the Trade & Development Bank (TDB).
Also, Kenya has made a commitment of US$20.0M into the Africa Development Fund pic.twitter.com/51fr4xbX6E
— Julians Amboko (@AmbokoJH) May 29, 2024
Focus of AfDB’s New Strategy
The AfDB’s new strategy prioritizes several key areas for development across Africa:
- Gender Equality: Promoting equal opportunities for women and girls.
- Youth Investment: Empowering young people through education and economic opportunities.
- Climate Action: Addressing the challenges of climate change through adaptation and mitigation strategies.
- Supporting Fragile States: Assisting countries facing instability and conflict.
- Good Governance and Economic Stability: Encouraging transparency and sound economic policies.
- Boosting Financing Capacity: Exploring innovative methods to increase resources available for development projects, such as the Sustainable Hybrid Capital, Risk Transfers, and the channelling of the International Monetary Fund’s Special Drawing Rights.
