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The African Development Bank granted Kenya a €73 million (US$79,6m) loan to aid Phase III of the Competitiveness and Economic Recovery Support Programme, with the funding extending through the fiscal year 2023-2024.
This was revealed in a meeting of the board of directors of the African Development Bank in Abidjan on 29 November 2023.
The loan is intended to build resilience and support inclusive post-Covid-19 economic recovery, by improving economic governance and boosting industrial development and competitiveness.
Nnenna Nwabufo, the Bank Group’s Director-General for East Africa said “Kenya is pursuing the vigorous recovery of its economy after the Covid-19 pandemic and is currently faced with significant shocks.
The country is facing its worst drought in 40 years and the consequences of the Russian invasion of Ukraine,”
She noted that “This additional €73 million in financing, approved today by the Bank’s Board of Directors, will enable the country to consolidate the progress it has already made and allow the Government to have fiscal space to deal with the impact of external shocks,”
The program will support Kenya’s medium- and long-term development across three key components: ensuring fiscal consolidation for the sustainability of public finances, strengthening industrial development and competitiveness, and promoting economic and social inclusion.
According to AfDB, the programme is designed as a programmatic General Budget Support operation, and phase I and II have enabled the Kenyan Government to fill the funding gaps for the fiscal years 2021/22 and 2022/23, enabling it to carry out post-Covid-19 economic recovery. -Business Insider Africa
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