AfDB lends Kenya $53m

Nairobi - The African Development Bank (AfDB) has lent Kenya $53m for education and communication projects, Finance Minister Uhuru Kenyatta said on Wednesday.





 
 
 
 


Kenya is facing a financing crunch this fiscal year after it decided to
delay the issuance of a 33.6 billion shillings debut Eurobond due to
the global economic slowdown.

The government is also under fire over multi-million dollar corruption scandals.

"Let me reassure the bank that the government remains committed to good
governance and will ensure these resources are applied as per the
agreement we have just signed and for the intended purpose," he said in
a speech.

The AfDB lent Kenya 2.5 billion shillings to construct and equip
information centres in poor areas and another 1.7 billion shillings for
technical training programmes.

AfDB has in the past committed 110 billion shillings to finance programmes in east Africa’s biggest economy, Kenyatta said.

Sixteen projects worth 29.9 billion shillings are ongoing.

Domestic borrowing

Kenyatta said the bank recently pledged another 34.8 billion shillings
to fund projects in sectors such as transport, health, energy and
agriculture for the next four years.

The government has budgeted a deficit of 127 billion shillings for the
current fiscal year but is struggling to bridge the gap following the
shelving of the Eurobond.

It still hopes to raise 25.2 billion shillings by borrowing abroad,
54.5 billion shillings through domestic borrowing and privatisation
proceeds of 13.7 billion shillings.

Kenya has also launched an inaugural infrastructure bond for 18.5 billion shillings.

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