NAIROBI, Kenya, Feb 6 – France has overtaken Japan as Kenya’s second-largest bilateral creditor accounting for 2 percent of external debt.
France has extended credit in the form of concessional Treasury loans and credit-export guarantee to a tune of Sh78 billion.
French Minister for the Economy and Finance Michael Sapin said France will continue its increased focus on supporting the private sector through the financing of the banking sector.
Sapin says the commitments are also expected to support the fight against the effects of global warming, particularly in agriculture.
“France is Kenya’s second bilateral donor and this engagement is bound to grow further with the increased commitments of the French Treasury’s funding mechanisms,” Sapin said.
Kenya is set to receive an additional Euros 1 billion from France to finance energy, transport, water and sanitation projects.
Other areas that the French are interested in investing in include urban development, education and health among others.
Sapin’s remarks come at a time when French car manufacturer Peugeot has returned to Kenya with plans assembling 5 of its car models at an undisclosed plant beginning June this year.
The interest on Kenya by the French, according to Sapin, include among others, its rapid urbanization which has reinforced its attractiveness for French exporters and investors.
“It’s also attractive because of the establishment, in 2015, of a Special Economic Zones system which provides a fiscal, financial and regulatory framework, amongst the most incentives in sub-Saharan Africa.”