A view from the annual meeting of European Bank for Reconstruction and Development (EBRD) held in Canary Wharf in London, United Kingdom on May 14, 2025.[AFP]
Kenya has ratified an agreement to establish the European Bank for Reconstruction and Development (EBRD) in the country, positioning Nairobi as the lender’s African headquarters.
Members of Parliament on Wednesday, July 2, overwhelmingly supported the ratification during a House sitting, backing the report by the Departmental Committee on Finance and National Planning.
Chairperson Kimani Kuria said the move will help Kenya unlock financing for infrastructure and micro, small and medium enterprises (MSMEs) without relying heavily on costly domestic borrowing.
“In a bid to access financing that is not expensive, Kenya is looking to establish banks and become a shareholder and a member of those banks,” said Kuria.
Kuria observed that the EBRD has identified Kenya as its African headquarters of choice this year, reinforcing the country’s role as a hub for global institutions expanding into East Africa.
“This means as shareholders and members of this bank, we will have access to cheaper credits so that we do not crowd out domestic borrowing whenever we need to finance projects of this kind,” noted Kuria.
Kuria explained that Kenya will join Benin, Côte d’Ivoire, Ghana, Nigeria and Senegal as African shareholders in the EBRD, expanding the country’s access to affordable development financing.
Seconding the report, Kesses Member of Parliament Julius Rutto noted that the approval is a critical step toward positioning Kenya to engage strategic development partners.
“This is a huge step in positioning our country, Kenya, to access strategic partners in terms of development and grow the economy as we seek to advance our goals,” said Rutto.
The ratification comes days after President William Ruto welcomed the EBRD’s decision to establish its African office in Nairobi.
“We value our growing partnership with the European Bank for Reconstruction and Development. This is a strategic move that will enhance support for MSMEs and promote public-private partnerships as key drivers of economic growth,” said Ruto after meeting EBRD President Odile Renaud-Basso on the sidelines of the Fourth International Conference on Financing for Development (FfD) in Seville, Spain.
The London-based EBRD, currently owned by 75 countries and two European Union (EU) institutions, invests in projects to support market economies.
Kenya had earlier ratified the establishment of the Africa Trade Corporation (ATC), becoming a shareholder and member as it seeks to deepen its role in regional and global development financing.
A view from the annual meeting of European Bank for Reconstruction and Development (EBRD) held in Canary Wharf in London, United Kingdom on May 14, 2025.[AFP]
Kenya has ratified an agreement to establish the European Bank for Reconstruction and Development (EBRD) in the country, positioning Nairobi as the lender’s African headquarters.
Members of Parliament on Wednesday, July 2, overwhelmingly supported the ratification during a House sitting, backing the report by the Departmental Committee on Finance and National Planning.
Chairperson Kimani Kuria said the move will help Kenya unlock financing for infrastructure and micro, small and medium enterprises (MSMEs) without relying heavily on costly domestic borrowing.
“In a bid to access financing that is not expensive, Kenya is looking to establish banks and become a shareholder and a member of those banks,” said Kuria.
Kuria observed that the EBRD has identified Kenya as its African headquarters of choice this year, reinforcing the country’s role as a hub for global institutions expanding into East Africa.
“This means as shareholders and members of this bank, we will have access to cheaper credits so that we do not crowd out domestic borrowing whenever we need to finance projects of this kind,” noted Kuria.
Kuria explained that Kenya will join Benin, Côte d’Ivoire, Ghana, Nigeria and Senegal as African shareholders in the EBRD, expanding the country’s access to affordable development financing.
Seconding the report, Kesses Member of Parliament Julius Rutto noted that the approval is a critical step toward positioning Kenya to engage strategic development partners.
“This is a huge step in positioning our country, Kenya, to access strategic partners in terms of development and grow the economy as we seek to advance our goals,” said Rutto.
The ratification comes days after President William Ruto welcomed the EBRD’s decision to establish its African office in Nairobi.
“We value our growing partnership with the European Bank for Reconstruction and Development. This is a strategic move that will enhance support for MSMEs and promote public-private partnerships as key drivers of economic growth,” said Ruto after meeting EBRD President Odile Renaud-Basso on the sidelines of the Fourth International Conference on Financing for Development (FfD) in Seville, Spain.
The London-based EBRD, currently owned by 75 countries and two European Union (EU) institutions, invests in projects to support market economies.
Kenya had earlier ratified the establishment of the Africa Trade Corporation (ATC), becoming a shareholder and member as it seeks to deepen its role in regional and global development financing.
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By Sharon Wanga