Boost for hospitals as Kenya gets Sh1.8 billion grant from China
The grant agreement outlines the terms and conditions of the funding, ensuring both parties understand the scope, amount, and purpose of the grant.
Several hospitals across the country have received a boost after Kenya received a Sh1.8 billion grant from China.
They include Baringo County Referral Hospital, Kilifi Hospital, Bungoma’s Misikhu, and the Londiani Referral Hospital in Kericho, among others.
Kaimosi Farmers Training College will also benefit from the grant following the signing of an agreement between National Treasury Cabinet Secretary John Mbadi and China Ambassador to Kenya Guo Haiyan today.
It comes barely a day after the envoy met with former Prime Minister Raila Odinga, alongside the CS, at his Capitol Hill offices to explore how to enhance bilateral cooperation.
The funds are a critical injection into the facilities and will improve them. The grant agreement outlines the terms and conditions of the funding, ensuring both parties understand the scope, amount, and purpose of the grant.
Recently, Mbadi stated that Kenya would be forced to look inward and not rely on aid as the struggles to get finances on track with debts, both domestic and external, which have a high servicing cost.
“Things are not easy — our fiscal space has no legroom anymore, especially as foreign countries like the USA have stopped funding us, and we soon expect the EU to follow suit. We will be left to look inward, and this is the worst period for Kenya. Some time back, we decided to take loans as a country, and these loans have now reached their peak,” Mbadi stated earlier this week.
Last week, Kenya and the International Monetary Fund (IMF) agreed to ditch the ninth and final review of its current lending programme, which was set to expire next month.
This is even as last year’s president, William Ruto, secured a Sh40 million loan from China during his visit to the country.
The funding was designated for the completion of 15 stalled infrastructure projects across more than ten counties, aiming to enhance regional development and economic growth.
Currently, China is Kenya’s largest bilateral lender, and with the government indicating it has no option but to continue borrowing, China’s share of Kenya’s debt is likely to grow once again.
As of March 2024, Kenya’s debt to China stood at approximately Ksh 920.52 billion, primarily used for infrastructure projects such as roads, railways, and port developments.
