The Board of Directors of the African Development Bank Group (Bank Group) has approved, on 08 July, a €293.88 million loan to support the second phase of Kenya's Economic Inclusion and Green Recovery Support Programme (EIGRSP II), reaffirming the Bank Group's longstanding partnership with the country.
The loan 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.
"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," said Abdoulaye Coulibaly, Director of the African Development Bank Group's Governance Department. "This operation reflects the Bank's confidence in Kenya's reform agenda and our continued commitment to supporting inclusive growth, private-sector development, and climate resilience."
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, and in coordination with key development partners, including the International Monetary Fund, the World Bank, and other development partners. This coordinated approach supports Kenya's efforts to strengthen fiscal sustainability, governance, private-sector development, and resilience.
The approval of EIGRSP II marks another milestone in the Bank Group's enduring partnership with Kenya. Since Kenya became a member of the Bank Group in 1964, it has supported the country's development priorities through investments and reforms across infrastructure, energy, agriculture, water and sanitation, private-sector development, regional integration, and governance.
"This operation reflects the strength of the partnership between the African Development Bank and Kenya," Coulibaly said further. "It supports reforms that will strengthen public institutions, improve the efficiency and transparency of public spending, expand opportunities for young people and entrepreneurs, and help build a more resilient and inclusive economy."
The programme builds on reforms initiated under the first phase and is aligned with Kenya's national Fourth Medium-Term Plan (2023-2027) and the larger Kenya Vision 2030 which aims to transform Kenya into a newly industrialised middle-income country by 2030.
