AFD supports Kenya's “Big Four” development programme

The visit to France of the President of the Republic of Kenya, H.E. Mr. Uhuru Kenyatta was the occasion to sign four financing agreements in support to Health emergency response, Opening up of Rural areas, Public Transport and Access to Water and Sanitation for Kenya.

The agreements, to a total tune of EUR 142M, are aligned with the Kenyan Vision 2030 and will be targeting the enablers of its “Big Four” agenda.

Covid-19 response

The first agreement consists in a EUR 30 million concessional loan, in support of Kenya’s emergency response to the Covid-19 pandemic.

AFD has been standing alongside Kenya since 2018 to support the implementation of Public Finance Management Reforms, by improving the access to resources and addressing key expenditures to meet its development Agenda. This top-up on the existing public finance Credit Facility Agreement confirms France’s commitment in accompanying Kenya on a sustainable public finance management path, by ensuring quick access to concessional resources in this stressed period.

Opening up of rural areas

The second agreement includes a grant of EUR 30 million, delegated to AFD by the European Union, blended with an AFD concessional loan of EUR 60M. The financing is aimed at upgrading rural roads in six Arid and Semi-Arid Land (ASAL) Counties – notably Isiolo, Laikipia, Marsabit, Meru, Samburu, and Tharaka-Nithi – ensuring access to markets and key social and economic infrastructure.

Access to water and sanitation

The third agreement concerns the Lake Victoria Water and Sanitation Project (LVWATSAN), financed jointly by AFD with a concessional loan of EUR 20 million, by the European Investment Bank with a concessional loan of EUR 35 million, and the European Union with a EUR 5 million grant.

The project will expand the water and sanitation distribution network in the third biggest city of Kenya, Kisumu, including to informal settlements and expansion to satellite towns. Additionally, there will be a water quality monitoring component for Lake Victoria. The project will be implemented by the Lake Victoria South Water Works Development Agency (LVSWWDA).

Public transport

The fourth agreement is for a EUR 1.5 million grant aimed at financing a comprehensive technical assistance for the improvement of Nairobi’s public transport.

It will support 1) Kenya Railways Corporation for the implementation of the Commuter Rail Master Plan, thus complementing the proposed infrastructure financing by the French Treasury (commuter rail link from the airport to Nairobi’s central railway station); 2) integrated planning of urban mobility and support for a Bus Rapid Transit project implementation; 3) coordination and capacity building of the Nairobi Metropolitan Area Transport Authority (NAMATA) in partnership with a French public institution (CODATU) with the same mandate.

Original source: AFD