The Government of Kenya, through the National Treasury, has secured a Ksh8.9 billion (€60 million) loan from the OPEC Fund for International Development, a global development finance institution.
The loan agreement was officially signed on Tuesday, April 22, by OPEC Fund President Abdulhamid Alkhalifa and Kenya’s Treasury Cabinet Secretary John Mbadi during his visit to the United States.
According to the Treasury, the funds will be directed towards the Economic Transformation and Green Recovery Support Programmes (ETGRSP), which are designed to accelerate sustainable development initiatives.
CS Mbadi stated that the policy-based financing will support key national projects, including the establishment of the Kenyatta National Hospital (KNH) Burns and Paediatrics Centre. Additional projects earmarked for funding include rural electrification across five regions, rehabilitation of the Bura Irrigation Scheme, expansion of electricity infrastructure, and construction of the Urban Roads Phase 1 Project in Wajir.
OPEC Fund President Alkhalifa noted that the program will enhance governance, promote climate resilience, and generate employment opportunities for youth and women.
“This program will drive low-carbon economic growth, encourage private sector participation in digital and climate-smart sectors, and support reforms in e-mobility, carbon markets, and green jobs. All of this contributes to sustainable service delivery and strong governance,” said Alkhalifa.
He also confirmed that the projects will be co-financed in collaboration with the African Development Bank (AfDB) and align with Kenya’s Bottom-Up Economic Transformation Agenda.
This announcement follows closely on the heels of another loan Kenya secured just a week earlier—worth Ksh77 billion—from commercial banks. The funds are intended to support road construction and rehabilitation, in conjunction with proceeds from the Fuel Levy Fund.
Kenya has increasingly turned to alternative financing options to sustain infrastructure development, amid revenue shortfalls and rising public debt. The country continues to grapple with high debt repayments and growing expenditure needs, particularly across its 47 counties.
In response, President William Ruto has also sought additional funding from China to support other vital state projects.
