NAIROBI, August 23 – President Mwai Kibaki has hailed a decision by the African Development Bank to open a local office in the country, which would act as a catalyst to the release of funds for Kenya’s development programs.
During talks with the ADB President Donald Kaberuka on Friday evening, President Kibaki noted that the African Development Bank (ADB) had allocated Kenya Sh38 billion under a new funding cycle, an increase of 20 percent from the initial Sh24.7 billion.
He said the funds would complement local resources in implementation of projects and programmes to attain targets under Vision 2030.
President Kibaki especially thanked the ADB for funding the first phase of the Isiolo-Moyale road and the Nairobi-Thika highway that were critical links in the country and the region.
The Head of State expressed his Government’s support for the proposed ADB funding under the African development cycle in the electricity inter-connection between Ethiopia, Uganda, DR Congo, Kenya, Rwanda and Burundi.
Other regional Projects proposed for funding by the bank include a Fertilizer plant and development of regional infrastructure corridors in roads and railways sub-sectors.
The President said the country was now peaceful and on the path to full recovery after the unfortunate post-election challenges. He further noted that although the Kenyan economy was on the path to recovery there were various global issues that may slow the recovery.
“The rising trend in global prices for food and fuel will continue to complicate economic management. Therefore there is need for global initiatives to assist especially oil and net food importing countries,” President Kibaki said.
The President applauded the cordial relations Kenya enjoys with the bank under the current leadership adding that crucial regional interventions for the African countries, including Kenya, had been initiated, citing the Africa Fertilizer mechanism Fund and additional funds to mitigate against the increasing oil and food prices.