President William Ruto has announced that the United States is helping Kenya identify affordable loan sources to support its economic development.
Ruto spoke on Monday, December 9, after his meeting with United States Under Secretary for International Affairs Jay Shambaugh at State House, Nairobi. The discussions focused on partnerships to access concessional financing.
The Head of State explained that Kenya is exploring funding options such as the International Development Association (IDA), a program managed by the World Bank. The IDA provides loans at zero or low interest rates to 75 countries, including Kenya.
The president also mentioned the government’s interest in Special Drawing Rights (SDRs), a funding mechanism offered by the International Monetary Fund (IMF) with interest rates typically below 5%.
In a statement, Ruto said, “The US has been working with Kenya to identify alternative affordable funding sources for governments and the private sector. These include the World Bank’s IDA21, Special Drawing Rights, and debt swaps.”
He further noted that Kenya and the US signed the Washington-Nairobi Vision during his State Visit in May, aimed at securing more concessional financing for Kenya and other developing nations.
Additionally, Ruto met with IMF Deputy Managing Director Nigel Clarke at State House to discuss ongoing programs aimed at boosting Kenya’s economy.
“Kenya and the International Monetary Fund (IMF) have an excellent relationship that has yielded demonstrable results in the past 60 years,” Ruto said.
