CS Mbadi Inks Ksh 8.9 Billion OPEC Deal to Drive Kenya’s Green and Infrastructure Agenda
Kenya’s National Treasury has entered into a Ksh8.9 billion (€60 million) financing agreement with the OPEC Fund for International Development aimed at fueling six transformative national projects across health, infrastructure, and energy.
Treasury Cabinet Secretary John Mbadi sealed the deal during a visit to the United States on April 22, in a ceremony attended by OPEC Fund President Abdulhamid Alkhalifa. The newly signed agreement marks a major win for the government’s Economic Transformation and Green Recovery Support Programmes (ETGRSP).
OPEC Loan to Accelerate Kenya’s Sustainable Growth Goals
According to CS Mbadi, the funds will be used to implement critical projects that align with Kenya’s economic revival strategy. A flagship component of the funding is the construction of the Kenyatta National Hospital (KNH) Burns and Paediatrics Centre, set to become a regional hub for specialized treatment.
Also on the project list are:
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-Rural electrification across five regions, targeting marginalized communities.
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-Rehabilitation of the Bura Irrigation Scheme to boost agricultural productivity.
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-Kenya Electricity Expansion Project aimed at strengthening the national grid.
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-Urban Roads Phase 1 Project in Wajir, to enhance mobility in the northeastern county.
Alkhalifa emphasized the importance of this collaboration, noting that it will “support reforms in e-mobility, foster climate-smart innovation, and promote green job creation while improving governance and service delivery.”
Strategic Partnerships and Co-Financing with AfDB
In his remarks, Alkhalifa confirmed that the OPEC Fund's involvement is part of a co-financing arrangement with the African Development Bank (AfDB). The partnership will integrate green technology initiatives, private sector development, and low-carbon infrastructure, supporting President Ruto’s Bottom-Up Economic Transformation Agenda.
The announcement underscores Kenya’s proactive approach in securing alternative development financing amid rising public debt and constrained domestic revenue growth. The projects are expected to generate employment, especially for youth and women, while enhancing Kenya’s economic resilience.
Kenya Turns to Strategic Financing Amid Budget Strains
The Ksh8.9 billion deal is the latest in a series of financial partnerships Kenya has pursued to bridge the development funding gap. Just a week prior, the country secured a Ksh77 billion commercial loan to fund road construction, supported by the Fuel Levy Fund.
With increasing county expenditures and substantial debt obligations, the government has turned to development partners like the OPEC Fund and AfDB to maintain momentum on flagship projects.
CS Mbadi affirmed that fiscal prudence will guide the implementation of these projects, assuring Kenyans that the funds will be deployed transparently and efficiently.
This agreement signals Kenya’s ongoing pivot to strategic, climate-conscious development, as the country aims to balance economic growth with sustainability and inclusivity in public service delivery.
