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Kenya: €188m African Development Bank loan to boost COVID-19 response

Kenya: €188m African Development Bank loan to boost COVID-19 response

The Board of Directors of the African Development Bank (www.AfDB.org) today approved an €188 million loan to support the Government of Kenya’s efforts to respond to the COVID-19 pandemic and mitigate the related economic, health and social impacts.

The loan will extend additional resources to Kenya as the country takes steps to contain the spread of the pandemic and deal with its unprecedented impact. It follows a request by the Government of Kenya, as part of its COVID-19 Emergency Response intervention, to help contain the scourge.

The Bank’s support will strengthen the national health system to effectively respond to the pandemic, build economic resilience and ensure quick recovery. The Bank’s intervention will also be used to support the poor and vulnerable people who have been negatively affected by the pandemic.

“We are very pleased to join other development partners in supporting the Government of Kenya’s efforts in mitigating the financial impact of the pandemic, especially in terms of the country’s expenditure in the health, social and economic sectors. The next step will focus on helping build resilience for post COVID-19,” the Bank’s Acting Director General for East Africa, Nnenna Nwabufo, noted.

Since Kenya’s first  COVID-19 infection was confirmed on 12 March 2020, cases have risen to over 1,000, while the number of recoveries and deaths are 375 and 50, respectively, as of 22 May 2020. The pandemic is placing significant pressure on an already stretched healthcare system. It has disrupted supply chains and caused job losses in the tourism, hospitality, horticulture and airline industries, among others.

In addition, informal and self-employed workers have also lost their livelihoods due to the impact of the pandemic.

The government’s response to the pandemic has been swift and multi-faceted, covering a range of measures including health-related containment measures, protection of the poor and vulnerable, provision of support to local businesses and to sustaining jobs. The Bank’s intervention, through the COVID-19 Emergency Response Support Program, is designed to support these measures.

As a result of demand and supply shocks, Kenya’s real GDP growth is projected to fall to between 0.6 and 1.4 percent from the initial 2020 projection of 6 percent.

In April, the Bank extended an emergency grant to help countries in the East and Horn of Africa, including Kenya, that are contending with swarms of locusts that are threatening food security. Kenya is facing its worst swarms in 70 years. In Ethiopia and Somalia, the outbreak is the worst in 25 years.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media Contact:
Olufemi Terry
Communication and External Relations Department
African Development Bank
Email: O.Terry@AFDB.org

Technical Contacts:
Baboucarr Koma
Principal Governance Officer
Governance and Public Financial Management Coordination Office (ECGF)

Mulle Chikoko
Chief Socio-economist
RDGE

About the African Development Bank Group:
The African Development Bank Group (AfDB) (www.AfDB.org) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 37 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states.

For more information: www.AfDB.org

African Development Bank Group (AfDB)
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