Kenya is set to receive Ksh.408 billion loan from the Africa Import and Export Bank (AfriExim) following a deal that was reached in November last year.
Manufacturing and agro-processing export development are among the sectors which will benefit from the multi-billion facility.
According to a report by Nation.Africa, Kenya will use the loan for the creation of industrial parks and promotion of intra-Africa trade under the African Continental Free Trade Area (AfCFTA).
It comes six months after President William Ruto met with Prof. Benedict Okey Oramah, President of AfriExim and Chairman of the board on November 17, 2022.
The President discussed various issues including the economic headwinds occasioned by a pent-up dollar demand among importers, a situation that has seen the shilling lose its value against the dollar hegemony.
“The amount will go to various sectors of the economy to enable the Government of Kenya to manage the economic headwinds induced by global factors,” reported Nation.Africa, which did not disclose source of the intel.
According to the source, the loan will also support the importation of various basic food commodities to ease the high cost of living in the country.
“The financing will also support the importation of essential commodities aimed at taming the high cost of living, and supporting the country’s post-Covid recovery infrastructure projects and boosting industrialisation,” the source added.
Cabinet meeting last year gave a greenlight to the Kenya National Trading Corporation (KNTC) to import 150,000 tonnes of rice, 125,000 tonnes of cooking oil, 2,000,000 tonnes of sugar, 25,000 tonnes of wheat, and 80,000 tonnes of beans duty-free.
Kenya also entered into a government-to-government deal with Saudi in March this year for importation of fuel commodities.