Kenya has officially become a member of the Asia Infrastructure Investment Bank (AIIB), a China-led multilateral lender that offers long-term funding for infrastructure projects. President William Ruto announced Kenya’s membership after meeting with AIIB officials in Beijing, emphasizing the potential benefits for the country in terms of accessing concessional funding for various projects.
AIIB, formed in 2016, provides loans for infrastructure, energy, transport, and other productive sectors with a repayment period of up to 35 years, offering Kenya an opportunity to secure cheaper funds amidst increased global credit risks. The lender’s membership currently stands at 109 countries with a capital base of $100 billion, positioning it as the world’s second largest multilateral development bank after the World Bank Group.
By joining AIIB, Kenya aims to enhance regional cooperation and connectivity while pursuing green economy initiatives, especially in light of recent challenges such as the collapse of the 2024 tax bill. With credit rating downgrades from major agencies like Moody’s and Fitch, the country seeks alternative sources of funding to support its development agenda and address fiscal concerns.
Author: Constant Munda
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