Kenya has emerged as the undisputed champion of African Development Bank (AfDB) funding in East and Central Africa over the past decade.

This strategic partnership has unlocked billions of dollars, propelling Kenya’s development across various sectors and solidifying its position as a regional economic powerhouse.

A Decade of Unmatched Support

AfDB data reveals a remarkable story. It’s worth noting that UA (Units of Account) is AfDB’s internal currency, and its exchange rate fluctuates.

Between 2013 and 2023, Kenya received a massive $3.718 billion (UA2.77 billion) in approved funding from the bank. This far exceeds the allocations for neighbouring Tanzania ($2.83 billion) and Rwanda ($1.81 billion).

Building Blocks for a Brighter Future

AfDB prioritises critical sectors that form the backbone of any thriving economy: energy, infrastructure development, and water access. These strategic investments have cemented AfDB’s role as a key development partner for Kenya.

The bank’s 2023 annual report highlights a significant increase in approvals for East Africa, with Kenya receiving nearly 29% of the total allocated funds (UA 2.29 billion). This represents a remarkable 37% jump compared to 2022, showcasing AfDB’s unwavering commitment to Kenya’s progress.

Landmark Projects that Speak Volumes

Kenya boasts several impressive projects that stand as testaments to this collaborative effort. The 300-megawatt Lake Turkana Wind Power Project, Africa’s largest wind farm, is a shining example of AfDB’s support for clean energy solutions.

Kenyan Companies Invest Sh21 Billion in Overseas Tech Expertise

Furthermore, the Last Mile Connectivity project is bringing the life-changing power of electricity to remote areas, while the dualling of the Kenol-Sagana-Marua Road is significantly enhancing transportation infrastructure, facilitating the movement of people and goods across the country.

A Growing Reliance on a Trusted Partner

Kenya, along with many other African nations, has increasingly turned to AfDB for financial support. Unlike traditional institutions like the World Bank and IMF, AfDB focuses exclusively on African development.

With a 60% shareholding by African countries, AfDB offers a unique perspective and understanding of the continent’s needs. Funding instruments go beyond just loans; AfDB offers grants, guarantees, and even a Transition Support Facility to assist struggling economies.

The ultimate goal? To empower African nations like Kenya to achieve sustainable development and reduce their dependence on traditional international lenders.

A Longstanding Partnership with Deep Roots

Kenya’s story with AfDB is one of long-standing partnerships. The country joined the bank in 1964 and has since become a top member state.

AfDB’s funding for Kenya has steadily grown since 2013, placing it alongside the World Bank and IMF as a prominent financier for the Kenyan government.

2016 marked a peak year, with Kenya receiving a record $823.26 million (UA612.4 million) from AfDB, a testament to the deepening ties between the two institutions.

Kenya Leads African Startup Funding in First Half of 2024

Challenges and the Road Ahead

While AfDB’s involvement has been a significant driver of Kenya’s development, it’s not without its challenges. An increase in AfDB funding has also led to the unfortunate discovery of corruption and unethical practices employed by some Kenyan firms vying for lucrative tenders associated with these projects.

Several companies have faced bans of up to three years as a consequence. These incidents highlight the importance of robust safeguards and transparency mechanisms to ensure that AfDB’s funding translates into tangible benefits for the Kenyan people.

Looking ahead, the partnership between Kenya and AfDB appears to be a positive force for the country’s future. With continued investment in key sectors, a focus on tackling corruption, and a commitment to transparency, Kenya is well-positioned to leverage AfDB’s support to achieve sustainable growth, improve living standards for its citizens, and solidify its position as a leader in East and Central Africa.