Kenya Boosts Investment in AfDB and African Multilateral Lenders with $100 Million Injection
President William Ruto delivered a speech at the opening of the 59th Annual Meetings of the African Development Bank Group and the African Development Fund in Nairobi on May 29, 2024.
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Kenya plans to increase its stakes in three vital African financial institutions by $100 million to show support for efforts to address the continent’s issues.
President Ruto announced the additional investment during the AfDB annual meetings in Nairobi, stating that the money will also benefit the Afrexim Bank and the Trade and Development Bank.
The aim of the new investments is to bolster the institutions in mobilizing more funding from Africa and beyond, according to the President.
Ruto emphasized the importance of African nations believing in their institutions first before expecting others to do the same and stressed the need for investments in these institutions to attract external investments.
The Kenyan government has already made further investments in Afrexim Bank, although specific figures were not disclosed.
Afrexim Bank, which funds trade-related projects in Africa, boasts a profitable year with increasing dividends and investments.
Additional funding for AfDB, which supports African countries exclusively, will increase Kenya’s ownership in the organization.
Dr. Ruto expressed optimism about the returns on investments in these institutions and encouraged both public and private entities to follow suit.
African member countries hold the majority shares in AfDB, with other nations, including the US, Japan, and India, holding minority shares.
TDB, which is owned by Comesa member states including Kenya, will also benefit from the new financial injection from Kenya.
In addition to the $100 million investment, Kenya will also provide $20 million to AfDB’s concessional window for lending to fragile countries.
Dr. Ruto hailed this as a show of Kenya’s confidence in the AfDB’s concessional window, illustrating the country’s commitment to the institution.
