NAIROBI, Kenya, May 14 – President William Ruto has rallied for the renewal of the African Development Fund, underscoring the transformative impact of the funds in supporting development projects in the country.
During a high-level meeting with Akinwumi Adesina, President of the African Development Bank (AfDB), held in Nairobi, the head of state reaffirmed the importance of the fund in promoting the nation’s development.
In his address during the World Bank’s International Development Association (IDA) meeting in Nairobi last month, President Ruto pushed for a substantial $25 billion 17th replenishment of the fund, which supports 37 low-income countries across the continent.
“I will continue to make a strong case for the 17 th replenishment of the African Development Fund. Kenya has benefitted from resources made available to us by the Fund,” said President Ruto.
He cited the Last Mile Connectivity project, which has expanded from 2.5 million households connected to the national electricity grid in 2013/14 to more than 10 million.
“Kenyans know it is a government project, but they need to know it was financed by the African Development Fund. It is making a difference in people’s lives, and we want to invest more to add momentum,” he added.
President Ruto also commended the African Development Bank for funding Kenya Towns Sustainable Water Supply and Sanitation program targeted at ensuring clean water provision to Kenyans.
The ongoing 16th replenishment, which raised a historic $8.9 billion in December 2022, is set to conclude next year.
Adesina, who jetted into the country to assess preparations for the Bank Group’s 59th Annual Meetings scheduled to take place on May 27 to May 31 at the Kenyatta International Convention Centre, reiterated that the Bank is committed to collaborating with the government in de-risking lending to agriculture through partial risk guarantees and credit guarantees.
Adesina said Kenya has the potential to replicate Ethiopia’s success of becoming self-sufficient and a net exporter of wheat after deploying the Bank’s flagship Technologies for African Agricultural Transformation (TAAT).
“We have used partial credit guarantees to support the issuance of a $500 million Panda bond by Egypt. We also used this tool to de-risk a EUR 350 million sustainable development loan for Benin. We did the same for Côte d’Ivoire to support the mobilization of EUR 533 million in financing for strategic environmental, social and governance projects,” said Adesina African Development Bank President.
When the project was deployed, Ethiopia expanded the cultivated wheat area from less than 5,000 hectares in 2018 to about 2 million hectares in 2024.
The two leaders also discussed ways to increase investments in other crucial sectors like agriculture, which is a top priority for the government due to its potential for rapid economic transformation.
