The Board of Directors of the African Development Bank (AfDB) approved a €293.88 million loan on 08 July to support the second phase of Kenya’s Economic Inclusion and Green Recovery Support Programme (EIGRSP II), according to a press release by the African Development Bank Group. The financing reaffirms the Bank Group’s longstanding partnership with Kenya. It will support reforms in economic governance, improve the management of public resources, expand opportunities for youth and women, back small businesses, and advance climate-resilient growth. The approval marks another milestone in a partnership dating back decades. It anchors Kenya’s continued push for inclusive, green, and resilient economic transformation.
Kenya became a member of the Bank Group in 1964, and since then the institution has supported the country’s development priorities through investments and reforms. These have spanned infrastructure, energy, agriculture, water and sanitation, private-sector development, regional integration, and governance. The new operation builds on reforms initiated under the first phase of the programme. It is aligned with Kenya’s national Fourth Medium-Term Plan (2023–2027). It also supports the broader Kenya Vision 2030, which aims to transform the country into a newly industrialized middle-income economy by 2030.
The programme supports reforms in public financial management, fiscal transparency, debt reporting, public procurement, and financial integrity. It will also promote economic inclusion, women’s economic empowerment, MSME development, job creation, and green growth. The operation was prepared in close collaboration with the Government of Kenya. Coordination involved key development partners, including the International Monetary Fund, the World Bank, and other development partners. This joint approach reinforces Kenya’s fiscal sustainability, governance, private-sector development, and resilience.
Speaking on the approval, Abdoulaye Coulibaly, Director of the African Development Bank Group’s Governance Department, highlighted the country’s trajectory.
“Kenya has demonstrated resilience in navigating a challenging global environment while continuing to pursue important reforms to strengthen its economy and create opportunities for its people,” he said.
He added that the operation reflects the Bank’s confidence in Kenya’s reform agenda and its continued commitment to supporting inclusive growth, private-sector development, and climate resilience. Coulibaly further underscored that the loan supports reforms designed to strengthen public institutions and improve the efficiency and transparency of public spending. He noted it will expand opportunities for young people and entrepreneurs.
The EIGRSP II operation reflects a deepening alignment between the Bank Group’s priorities and Kenya’s national development strategy. It targets both governance and economic inclusion objectives simultaneously. By addressing fiscal management alongside green growth, the programme integrates structural and environmental goals. It also links reform delivery to job creation and support for micro, small, and medium-sized enterprises. The Bank Group’s continued engagement signals sustained backing for Kenya’s path toward a more resilient and inclusive economy.
