The Nation (Nairobi)

Kenya: Country Gets Sh6 Billion Funding From U.S.

18 June 2008


Nairobi — Prime Minister Raila Odinga got the approval of US congressmen, agencies, financiers and diplomats for a further US$ 90m (Sh5.85 billion) funding for Kenya's rehabilitation programme.

Washington also promised Kenya more money in the next two years as the PM articulated Kenya's reform agenda at a luncheon attended by nearly 300 guests.

"Africa only needs investment and trade", said the PM after he explained the aid was to avert the recent socio-political crisis that had severely dented Kenya's economy.

He appealed to American investors to venture into public-private sector partnerships with Kenya noting continental foreign aid had mostly been diverted to individual accounts abroad.

The PM who is due to sign the Open-Skies Agreement Wednesday to allow direct US flight exports to Kenya said the arrangement was dual.

"With value addition to our horticulture, flowers, tea and coffee, Kenya will also expand its bi-lateral trade with US beyond AGOA".

The PM urgently wants one-stop shops set up in Kenya to provide an enabling investment environment.

Taking a swipe at past African dictatorship and corruption, the Prime Minister exhorted Afro-optimism saying he believed the continent would see change.

"It's a long way from single party, military and strong-man leadership", said the PM who noted Africa must now espouse transparency, accountability and good governance.

The PM said though the Grand Coalition government pioneered in Kenya was not easy, it was an option for troubled African states.

"There must be room for consultation", he said after he explained Kenya's unique political situation and the resultant violence.

"The opposition came to power in 2002 but did not implement comprehensive reforms", he said and noted this was part of the reasons why up to 400,000 Kenyans now lived in the Diaspora.

US Assistant Secretary of State Dr Jendayi Frazer and the President of US Corporate Councils Steven Hayes praised Odinga's role in the Peace Accord and noted Kenya's once vibrant economy and strategic position in the Horn Africa prompted the US, UK and EU intervention into the political violence.

"We are also keen to address regional security with Kenya", Dr Frazer told the meeting attended by US Government officials, agencies, congress, senate, US Corporate, World Bank, IMF, US Civil societies and NGOs and the Diplomatic Corps.

The PM later briefed the World Bank Managing Director in charge of Africa Dr Ngozi Okonjo-Iweala on the Grand Coalition government reform programme which covers the constitution, elections and the judiciary at the organisation's headquarters. He also informed the Bank about the Kenya's Vision 2030 and programmes for job creation for the youth.

Mr Odinga asked the Bank to cover Kenya under the Global Food Response for the urgent acquisition of farm implements and to fund projects in the Ministry of Northern Kenya and Arid Lands.

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