UK to pump Ksh. 20 billion into Big Four projects
The United Kingdom (UK) has announced Ksh.20 billion of a new government and private investment into President Uhuru Kenyatta’s Big Four Projects.
Under this financing kitty, Ksh.5.2 billion will be matched by Ksh.3.5 billion of private investment to finance 10,000 green affordable homes for Kenyans.
“These quality homes will be energy and water efficient properties for low and middle- income families, and will contribute to Kenya’s goal of building 500,000 new affordable homes by 2022. The investment will go directly into projects, and is a combination of UK government aid and privately raised funds,” said UK Foreign Secretary Dominic Raab.
Kenya will see the launch of the Nairobi International Financial Centre, in partnership with the City of London.
Kenya will also receive Ksh. 67 million of new UK funding for policy advice and technical assistance to support the development of green manufacturing in Kenya, including manufacturing of electric vehicles. This builds on the UK’s Manufacturing Africa programme, which has already supported Ksh.4.2 billion of new manufacturing investment into Kenya;
Lastly, the completion of the Ksh.33 billion Kipeto Wind Farm, backed by the UK’s Actis in partnership with the U.S Government.
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“This £132 million package of new UK-Kenya deals from the UK government and British firms will support investment in the region, including building new green affordable homes, connecting households to clean energy, and boosting manufacturing.
“This package of investments will create new jobs and unlock new opportunities for UK and Kenyan businesses by strengthening the relationship between Nairobi and the City of London.” Said Raab.
The funding was announced Tuesday when President Kenyatta toured the UK for a bilateral talk with UK Prime Minister Boris Johnson.
Uhuru’s tour is also heavily focussed on trade, business and climate change, and is expected to meet COP26 President Alok Sharma at the historic Kew Gardens to celebrate progress on the Kenya-UK Year of Climate Action.
The UK announced KES 550 million of new UK funding to accelerate Kenya’s climate transition, including projects supporting renewable energy, clean cooling, and forest restoration – including Kaptagat Forest.
Earlier this year, the UK and Kenya ratified a new Economic Partnership Agreement to provide continuity for Ksh.200 billion of annual trade between Kenya and the UK, including duty and quota free access to the British market for Kenyan exports.
UK Government will also help Kenyan firms take advantage of trade deals between the two nations, by funding a Ksh.2.7 billion digital customs system to help smooth trade.