Kenya's pitch to the East courts Arab cash

Kenya’s ongoing effort to woo funding from the Middle East and Asia is set to become more focused mid this month with the government hosting leaders from Arab countries for a two-day conference.

The conference to be held on March 16 and 17, 2009 will expose participating financial institutions to investment opportunities available in the country.

Announcing the development, Deputy Prime Minister and Finance minister, Uhuru Kenyatta, said the government would remain open to engage with countries that are willing to work with Kenya on the basis of mutual respect.

“To this end, we are planning to hold the third round table conference with Arab development financial institutions to discuss and agree on a three-year investment programme,” he said.

Over the last decade, Kenya has taken deliberate policy decisions to source funding from Middle East and Asian countries which are seen as more sympathetic to its development cause and whose funding comes with less conditions, especially those touching on human rights and corruption.

Mr Kenyatta was speaking in Nairobi after signing a Sh735 million loan agreement with the Kuwait Government, through the Kuwait Fund for Arab Economic Development, for the upgrading of Wajir District Hospital to a referral hospital to serve North Eastern and Eastern provinces.

The loan covering 60 per cent of the upgrade cost will be repayable over the next 24 years.

Last week, Iranian President, Mahmoud Ahmadinejad, led a delegation of over 100 business and government officials to the country where a number of memoranda of understanding on areas of cooperation between the two countries were signed.

Kuwait is currently co-financing the rehabilitation and development of Bura Irrigation and Settlement Scheme projects.

The two governments are also engaged in talks over the funding of the construction of the Garrisa-Modogashe Road.

Kenya has also been keen to increase its trading ties with Japan, China, and India as it looks to dilute its dependence on Western countries.

“Kenya has always been ready to do business with those who are ready to do business with us,” said Mr Kenyatta.