RENEWABLE energy projects will get the lion's share of the Sh51.77 billion (€435 million) medium term grant that the government inked with European Commission yesterday in Nairobi.
The grant is part of the Sh3.33 trillion (€28 billion) that the EC extended to 16 African countries for period between year 2014 and 2020 under the European Development Fund-African, Carribean and Pacific nations programme.
All the grants were signed in Nairobi by representatives of the respective governments.
Head of the EU delegation in Kenya Lodewijk Briet told a press conference after the signing ceremonies that the EU plans to focus "more and more on renewable energy and less and less on physical infrastructure".
He however said that the priority projects will be designed and developed by the government for approval by the EC.
National Treasury Cabinet Secretary Henry Rotich said the funds will benefit three broad areas of food security and disaster preparedness, sustainable infrastructure and institutional governance structures for better absorption of the funds.
"The development funds are expected to prioritise expansion of Nairobi's public transport infrastructure to fight congestion, increase food production and improve drought management systems and support stronger governance," the National Treasury said in a press statement that preceded the signing of the deal.
Rotich told journalists that his ministry will expedite preparation of finance documents for approval to ensure timely implementation of projects under the EDF-ACP programme.
The funds will be released as and when a project is approved.
Rotich said the ministry has prepared Kenya external aid policy to facilitate harmonisation and coordination of separate donor funds touching on the same sector to realise better results.
Briet supported implementation of the policy expected in the first quarter of the fiscal year 2014/15.