Nairobi, March 27- China has extended a Ksh1.8 billion grant to Kenya to support healthcare development. A grant is a financial contribution provided without the expectation of repayment, often used to strengthen diplomatic ties between nations.
According to Kenya’s Treasury, the agreement was signed on Thursday morning, with the funds set to enhance health facilities across the country. Treasury Cabinet Secretary John Mbadi and Chinese Ambassador to Kenya, Guo Haiyan, formalized the deal at the Treasury Building.
The grant will facilitate the upgrade of several hospitals, including Londiani Referral Hospital, Baringo County Referral Hospital, Kilifi Hospital, Misikhu Hospital, Bildad Kagia Hospital, and Kaimosi Farmers Training College. Foreign Affairs Principal Secretary Korir SingOei acknowledged China’s contribution, noting its positive impact on Kenya’s social and economic sectors.
This financial assistance follows President William Ruto’s official visit to China in September 2024, during which Kenya secured a Ksh40 billion loan to complete 15 stalled infrastructure projects across multiple counties.
China remains Kenya’s largest bilateral lender, with its loans totaling approximately Ksh920.52 billion as of March 2024. These funds have primarily been allocated to infrastructure projects such as roads, railways, and ports. In contrast, France, Kenya’s second-largest bilateral lender, has provided loans amounting to around Ksh116.69 billion, focusing on urban development and water projects.
Despite earlier commitments to align government spending with revenue by 2027, the Kenyan government recently announced plans to continue borrowing. Treasury Secretary John Mbadi expressed skepticism about achieving a balanced budget within two years, predicting a fiscal deficit of about 3% of GDP by 2028. He emphasized the importance of public services, arguing that tax compliance depends on the government’s ability to deliver them.
