In the budget estimates for the financial year starting July 2022, the Treasury has listed Japan as the largest source of bilateral loans and grants, overtaking China, which has been the biggest financier for nearly a decade.
China is projected to lend Kenya KSh29.46 billion for the fiscal year 2022/23, a decline from KSh140.03 billion in the 2015/16 budget.
This will mark the second year in a row that China will trail Japan in bilateral loans, having committed KSh21.25 billion in the current year ending June against Japan’s KSh36.49 billion.
China, however, remains the biggest bilateral creditor because of big-ticket deals it has inked with Kenya in the last decade to fund and build mega infrastructure projects such as roads and a modern railway. mark
Funding from Japan is earmarked for projects under Infrastructure Department (KSh17.66 billion), the Energy ministry (KSh9.17 billion), and the Treasury (KSh2 billion).
On the other hand, the Treasury budget estimates show slightly more than half of the projected loans from China — KSh15.62 billion — in the coming year will be injected into projects, largely power transmission infrastructure, under the Energy ministry.
Other beneficiaries are the Infrastructure Department — largely roads — which will get KSh5.73 billion, while the ICT and Water & Sanitation ministries will be funded to the tune of KSh4.02 billion, and KSh4.10 billion, respectively.
Five countries — Japan (KSh31.11 billion), China (KSh29.46 billion), France (KSh23.36 billion), Germany (KSh14.42 billion) and Italy (KSh6.07 billion) — account for 81.66% of projected bilateral loans in the year starting July.
Kenyan Wall Street
