AfDB Approves €294 Million to Support Kenya's Economic Reforms

The approval of EIGRSP II marks another milestone in the African Development Bank Group’s partnership with Kenya, which began when the country became a member of the Bank in 1964.

The African Development Bank Group (AfDB) has approved a €293.88 million loan to support the second phase of Kenya's Economic Inclusion and Green Recovery Support Programme (EIGRSP II), reinforcing its long-standing partnership with the country. The financing will help Kenya advance reforms that strengthen economic governance, improve public resource management, create more opportunities for women and young people, support small businesses and promote climate-resilient economic growth.

Abdoulaye Coulibaly, Director of the African Development Bank Group's Governance Department, said Kenya has continued to show resilience despite a challenging global economic environment while pressing ahead with important reforms. He noted that the new operation reflects the Bank's confidence in the country's reform agenda and its commitment to supporting inclusive growth, private-sector development and climate resilience.

Programme Focuses on Transparency and Business Growth

The second phase of the programme will support reforms to improve public financial management, fiscal transparency, debt reporting, public procurement systems and financial integrity. Alongside governance reforms, the programme is designed to expand economic opportunities by promoting women's economic empowerment, supporting micro, small and medium-sized enterprises (MSMEs), encouraging job creation and advancing green growth initiatives.

The African Development Bank developed the programme in close cooperation with the Government of Kenya and coordinated its preparation with key development partners, including the International Monetary Fund (IMF) and the World Bank. This collaborative approach is intended to strengthen fiscal sustainability, improve governance, encourage private-sector investment and enhance the country's ability to respond to future economic and climate-related challenges.

Long-Term Partnership Supports Kenya's Development Vision

The approval of EIGRSP II marks another milestone in the African Development Bank Group's partnership with Kenya, which began when the country became a member of the Bank in 1964. Over the decades, the Bank has supported Kenya through investments and policy reforms across sectors including infrastructure, energy, agriculture, water and sanitation, governance, regional integration and private-sector development.

Coulibaly said the programme reflects the strength of the relationship between the Bank and Kenya, adding that the reforms will improve the efficiency and transparency of public spending while creating more opportunities for entrepreneurs and young people. The initiative builds on reforms launched during the programme's first phase and aligns with Kenya's Fourth Medium-Term Plan (2023–2027) as well as the country's Vision 2030 strategy, which seeks to transform Kenya into a newly industrialised middle-income economy by the end of the decade.