Kenya Gets KSh 4.3b Grant From World Bank: "We Are Not Going To Pay Anything"

• Kenya has secured a KSh 27 billion loan from the World Bank, including a grant for last-mile electricity connectivity
• President Ruto announced a plan to connect thousands of households to electricity, emphasising the importance of grants and concessionary loans
• Kenya committed an additional KSh 13.2 billion to increase its share in African development banks, showcasing confidence in regional financial institutions

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President William Ruto has announced that the World Bank has extended to Kenya a KSh 27 billion in funding for the last-mile electricity connectivity project.

Last mile project to connect 280,000 households

Of this amount, KSh 4.3 billion is a grant provided through IDA21 (International Development Association), a part of the World Bank Group that offers grants and low-interest loans to help countries invest and improve lives.

The president made the announcement while unveiling an ambitious plan to connect 280,000 households to electricity under the last-mile connectivity project.

"Of the KSh 27 billion, KSh 4.3 billion is a grant. It is not money that we are going to pay interest on or even repay at all. These are the kinds of resources that we are looking for. They are concessionary resources that will assist our economies in closing the gap in development financing so that we can do more with the taxes we raise. We can do more with the loans we get that are concessionary, and we can do more with grants," said Ruto.

During his state visit to the US, Ruto said he engaged his host, President Joe Biden, in identifying ways in which America could lead in helping Africa secure concessionary funding in terms of grants and low-interest loans with flexible repayment plans.

The government, he added, was collaborating with the African Development Bank (AfDB) and Saudi Arabia on a KSh 22 billion electricity connectivity programme. This initiative aims to connect over 270,000 customers.

Kenya invests KSh 13.2 billion in AfDB

During the opening of the AfDB annual meeting in Nairobi, Ruto announced that Kenya would increase its share in African development banks by KSh 13.2 billion as a show of confidence.

The banks include AfDB, Trade and Development Bank (TDB) headquartered in Bujumbura, and the Cairo-headquartered African Export-Import (Afrexim) Bank.

In his opening remarks, Ruto discussed what he termed unfair lending patterns extended to African countries and misaligned priorities by some of the continent's partners.

President Ruto criticised the tendency of the international financial system to label Africa as a risky borrower despite its vast human, mineral, and agricultural potential.

He questioned the contradiction, where it is considered safe to mine in conflict zones but risky to lend to African economies.

Additionally, President Ruto highlighted the need for African nations to prioritise their own continent as a market.

Rather than seeking markets elsewhere, he called for a focus on selling within their existing markets.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke