Written By Lisa Murimi
The National Treasury of Kenya is set to receive Ksh60 billion in external funding from 14 countries to support its 2024/25 Financial Year development budget.
This marks a Ksh6 billion decrease from the amount received in the 2023/24 Financial Year. In addition to loans, the Treasury will also receive Ksh5.5 billion in grants from various countries.
Countries providing loans include Finland, Belgium, Italy, Spain, Germany, France, Kuwait, Saudi Arabia, Japan, South Korea, China, Israel, Poland, and Hungary.
Denmark, Sweden, and the United States will support Kenya’s development agenda through grants.
Japan will contribute the highest amount, offering a Ksh14 million loan and Ksh353 million in grants.
France will loan Ksh11.7 billion and provide Ksh828 million in grants, while Germany will contribute Ksh9 billion in loans and close to Ksh3 billion in grants.
China, which holds a significant portion of Kenya’s foreign debt, will loan Ksh7.3 billion without additional grants.
Scandinavian countries, including Finland, Denmark, and Sweden, will primarily provide grants. Finland will contribute Ksh970 million in loans and Ksh500 million in grants, Denmark will offer a Ksh100 million grant, and Sweden will provide a Ksh60 million grant.
Additional contributions include Italy (Ksh2 billion), Saudi Arabia (Ksh1.2 billion), Israel (Ksh1 billion), Poland (Ksh1 billion), and Kuwait (Ksh919 million).
The United States, through USAID, will issue a Ksh231 million grant for various development projects.
Furthermore, Kenya plans to borrow an additional Ksh53 billion from international financial institutions such as the World Bank, African Union, and European Investment Bank.
Overall, Kenya aims to secure Ksh113 billion in loans and Ksh31 billion in grants for the 2024/25 financial year.
This funding strategy comes after President William Ruto decided to forego Ksh346 billion that was expected to be raised through the Finance Bill 2024.
