Tuesday, September 3, 2024 - Kenya has officially become a full member of the Asian Infrastructure Investment Bank (AIIB) as of September 3, 2024, concluding a membership process that has spanned nearly six years.
This development marks Kenya’s
entry into a major multilateral development institution with a robust
capitalization of $100 billion (about Ksh12.8 trillion) and 109 member countries.
The AIIB, headquartered in
Beijing, China, is a strategic player in global development finance, offering
concessional funding aimed at boosting infrastructure, combating climate
change, enhancing connectivity, fostering regional cooperation, and supporting
technology-driven projects.
This move comes as part of the
Kenya Kwanza administration’s broader strategy to leverage green financing and
broaden the country’s financial base for development.
The timing is equally opportune
for Ruto, as he seeks to raise over Ksh1 trillion to plug budget shortfalls
that came after Kenyans rejected the Finance Bill 2024.
Kenya's membership in the AIIB
was finalised following a key Cabinet approval in January 2024, pointing the
country's commitment to diversifying its funding sources beyond traditional
Western-dominated institutions like the International Monetary Fund (IMF) and
the World Bank.
This decision aligns with the
administration's agenda of strengthening regional cooperation and advancing
connectivity through sustainable, green economic practices.
President Jin Liqun and the
Board of Directors welcomed Kenya’s accession during a recent meeting at the
AIIB headquarters. The membership is expected to provide Kenya with significant
financial resources for projects that align with the bank's focus areas,
including infrastructure development and climate action.
AIIB’s funding will play a
crucial role in supporting Kenya’s infrastructure needs and green initiatives,
complementing similar financing previously received from the IMF.
The Kenyan DAILY POST
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