The United Arab Emirates (UAE) is set to provide Kenya with a loan of $1.5 billion, according to sources familiar with the development. Initially planned to be disbursed in tranches, the loan is now expected to be provided all at once. The Kenyan Treasury Secretary, John Mbadi, and the UAE Foreign Ministry have not responded to requests for comment on the matter.
Last year, Kenya sought funding from the UAE to diversify its budget financing sources beyond euro bonds, traditional bilateral creditors like China, and multilateral lenders. The loan aims to support the current administration led by President William Ruto in stabilizing the country’s economic situation. This comes after deadly demonstrations in June last year led to the cancellation of planned revenue-generating tariffs, which were projected to bring in an additional $2.7 billion in income.
Additionally, the loan is expected to boost Kenya’s foreign reserves as it enters negotiations for a new program with the International Monetary Fund. The existing $3.6 billion agreement with the IMF is set to expire on April 1.
In a broader context, the UAE has been increasing its presence in Africa to counter the growing influence of Russia and China on the continent. Recent engagements include strengthening partnerships with Nigeria and Ethiopia. Nigeria’s President, Bola Tinubu, visited the UAE’s President, Sheikh Mohamed bin Zayed Al Nahyan, in 2024 to address a visa issue. Furthermore, the central banks of the UAE and Ethiopia signed a bilateral currency swap agreement worth up to $816.79 million.
The Abu Dhabi wealth group ADQ has also committed to investing $35 billion in Egypt, with a significant portion allocated to developing valuable land on the country’s Mediterranean coast. In the case of Kenya, the UAE has agreed to a Comprehensive Economic Partnership Agreement to enhance trade relations and establish the UAE as a key export market for Kenya.
The agreement between Kenya and the UAE was signed by Presidents William Ruto and Sheikh Mohamed bin Zayed Al Nahyan. According to a statement from the State House, the deal strengthens Kenya’s position as a gateway to East and Southern Africa, while also highlighting the UAE’s role as a pivotal financial and logistical hub connecting the Middle East, Asia, and beyond.
