The Kenyan Treasury has committed Sh12.9 billion to join the Africa Finance Corporation (AFC), reinforcing the country’s push to finance major infrastructure projects through the multilateral development institution. This investment comes as Kenya eyes funding opportunities worth approximately Sh100 billion from the AFC.
According to Treasury disclosures to the National Assembly’s Finance Committee, an initial payment of Sh494.5 million was made last year, with an additional Sh1.29 billion allocated in the second budget revision. The government aims to complete the required payments by August 2024.
The AFC, a pan-African financial institution, funds infrastructure development across the continent through debt and equity investments. Since Kenya became a member in 2017, AFC has invested Sh47.7 billion in the country’s transport, energy, and natural resource sectors. Notable projects include roads, ports, and energy infrastructure aimed at bolstering Kenya’s economic growth.
Treasury Cabinet Secretary John Mbadi emphasized that Kenya’s membership in AFC will unlock significant financial opportunities while ensuring sustainable infrastructure development.
“The Treasury is focused on ensuring that Kenya secures the necessary funding for its priority projects. Our participation in the AFC opens doors to critical financing for roads, energy, and other strategic sectors,” said Mbadi.
However, concerns have emerged over the financial implications of the membership, with some parliamentarians questioning the burden on taxpayers. Despite this, the National Assembly’s Finance Committee has recommended MPs approve the investment by March 13, 2025.
Kenya’s planned projects, amounting to Sh765 billion, include a significant portion of private-sector participation, such as the Nairobi-Mombasa Expressway and Dongo Kundu Economic Zone.
The Treasury maintains that joining the AFC is a strategic move to access long-term financing options that will drive economic growth and strengthen Kenya’s position as a regional investment hub.
As the country moves forward with its AFC membership, all eyes will be on the government’s ability to balance fiscal responsibility with the need for sustainable infrastructure development.
