Kenya Secures Ksh8.9 Billion Loan After Intense Lobbying in the US

Treasury Cabinet Secretary John Mbadi announced on Tuesday night that Kenya has signed a Ksh8.9 billion (€60 million) loan agreement with OPEC Fund President Dr. Abdulhamid Alkhalifa for the Economic Transformation and Green Recovery Support Programme (ETGRSP).

Why This Matters: The Treasury Ministry has been engaged in a series of meetings with international leaders to secure a loan with better terms, weeks after cancelling a four-year agreement with the IMF (valued at Ksh466 billion) to renegotiate its engagement terms.

According to Mbadi, the new loan will support the implementation of Vision 2030 initiatives and the Bottom-Up Economic Transformation Agenda (BETA), among other initiatives.

Five other projects earmarked under the partnership include the Kenyatta National Hospital (KNH) Burns & Paediatrics Centre, rural electrification in five regions, the Bura Irrigation Scheme, Kenya Electricity Expansion, and the Urban Roads Phase 1 Project in Wajir.

The OPEC Fund President told the press that the loan would help strengthen Kenya's governance and boost climate resilience, among other benefits.

“The program will promote low-carbon growth, foster private sector development in digital and climate-smart sectors, and support reforms in e-mobility, carbon markets, and green jobs—contributing to sustainable service delivery and good governance,” stated Alkhalifa.

2025 Spring Meetings

The agreement followed a series of negotiations led by Mbadi and his Principal Secretary Chris Kiptoo, all of which were covered extensively in our Money News Roundup newsletter on Wednesday morning.

On Monday, the duo, accompanied by a Kenyan delegation, met separately with representatives from the International Monetary Fund and the World Bank for discussions focused on Kenya’s governance and anti-corruption frameworks. These talks emphasized the need to strengthen institutions, promote transparency, and enhance the efficiency of public financial management.

On Tuesday, the pair met with Ndiamé Diop, the new World Bank Vice President for Eastern and Southern Africa, who will be based in Nairobi following the Bank’s decision to establish its regional hub in Kenya. Mbadi described this move as a strong vote of confidence in Kenya’s leadership and international partnerships.

Shortly afterward, they also met with Mr. Robert Kaproth, Assistant Secretary at the U.S. Department of the Treasury, in Washington, D.C. Their discussions focused on the strategic partnership between Kenya and the United States, highlighting progress in key areas of mutual interest.

Last month, Kenya cancelled a four-year agreement with the IMF (valued at Ksh466 billion) and subsequently announced plans to renegotiate the terms of engagement, citing new tariffs introduced by U.S. President Donald Trump. As a result of the cancellation, Kenya forfeited a Ksh110 billion disbursement.