The African Development Bank (AfDB) has approved a KSh22 billion (€188 million) loan to boost Kenya’s efforts in response to the COVID-19 pandemic and mitigate the related economic, health and social impacts.
In a statement on their website, AfDB says that the Kenyan government requested the loan as part of its COVID-19 Emergency Response intervention. The funds will strengthen the national health system, support the poor and vulnerable people, and build economic resilience to ensure a quick recovery.
“We are very pleased to join other development partners in supporting the Government of Kenya’s efforts in mitigating the financial impact of the pandemic, especially in terms of the country’s expenditure in the health, social and economic sectors. The next step will focus on helping build resilience for post-COVID-19,”Acting Director General for East Africa, Nnenna Nwabufo
Kenya has over 1000 COVID-19 infections while the number of recoveries and deaths is 375 and 50, respectively, as of 22 May 2020.
The pandemic is placing significant pressure on an already stretched healthcare system. It has disrupted supply chains and caused job losses in the tourism, hospitality, horticulture and airline industries, among others. In addition, informal and self-employed workers have lost their livelihoods due to the impact of the pandemic.
As a result of demand and supply shocks, Kenya’s real GDP growth is projected to fall to between 0.6 and 1.4 percent from the initial 2020 projection of 6 percent.