Kenya in Sh36.3 billion credit deal

Kenya on Monday signed three credit agreements with the World Bank amounting to Sh36.3 billion for the health ad energy sectors.

The first two agreements target the health sector with an allocation of Sh9.9 billion while a third and the largest by far a Sh26.4 billion will go towards supporting the energy sector under the Kenya Electricity Expansion Project.

Speaking at the ceremony, Finance minister Uhuru Kenyatta said the deals signified the cordial relations between Kenya and the bank.

“These (health and energy) are two sectors identified in our Vision 2030 that will be critical in spurring economic growth going forward,” he said.

The loans coincide with the celebrations to mark the 50th anniversary since the bank’s first assistance to Kenya in 1960, three years before the country gained independence.

World Bank approved Sh8 billion for Kenya to go towards service delivery in the health sector and purchase of pharmaceuticals and medical supplies under the health sector support project.

The Kenya health sector support project, approved by the bank’s board of executive directors will finance 4,000 health centres and dispensaries to improve the quality of services provided and governance.

“The bank’s support to Kenya’s health sector will help increase access of Kenyans to basic health services,” said Mr Johannes Zutt, the country director for Kenya.

“This project will improve the governance of health service delivery, increase the flow of resources to local health facilities, and enhance social equity,” he added.

The World Bank said this would also help the country attain the health-related Millennium Development Goals and the Vision 2030 social pillar.

The latter seeks to spur Kenya into a middle income country over the next 20 years.

The second is a Sh1.9 billion for Kenya’s component under the Sh5.09 billion East Africa public health laboratory project networking project.

The project was approved by the bank board on May 25, 2010 to network 25 public health laboratories across Kenya, Tanzania, Uganda and Rwanda to improve access to diagnostic services to vulnerable population.

The facilities will be connected using internet and mobile communication technologies, said Mr Zutt.

“These projects will support the government’s efforts to strengthen the health sector to increase access of Kenyans to basic health services,” he said.

Mr Kenyatta welcomed the coordinated regional approach saying it was critical to equip EAC member states with necessary capacity in terms of structures, equipment and skilled staff to curb cross-border disease outbreak.

Tanzania and Rwanda will each get Sh1.2 billion ($15 million) while Uganda gets Sh800 million ($10 million) of the funds.