Kenya Reportedly Close to Securing $1.5 Billion From the UAE

People familiar with the development, two of whom asked not to be identified, the loan is expected to be disbursed all at once as opposed to the initial plans of disbursing in tranches.

Kenyan Treasury Secretary John Mbadi and the UAE Foreign Ministry did not reply to queries for comment, as per a Bloomberg report.

Last year, the country approached the UAE for funding to diversify its budget financing sources outside euro bonds, traditional bilateral creditors such as China, and multilateral lenders.

The loan in question is intended to assist the current administration under President William Ruto in stabilizing its economic situation considering its deadly demonstrations in June last year, which prompted it to scrap planned major revenue-generating tariffs, which were projected to generate an additional $2.7 billion in income.

Additionally, the loan is expected to raise Kenya’s foreign reserves as it begins negotiations for a new program with the International Monetary Fund, whose existing $3.6 billion agreement expires on April 1.

In light of Russia and China’s growing influence in Africa, the UAE has been pushing to make a play on the African market.

Very recently, the Middle-Eastern country engaged one of Africa’s largest economies, Nigeria, in bolstering their partnership.

To this effect, the president of Nigeria, Bola Tinubu, in 2024, visited the president of the UAE Sheikh Mohamed bin Zayed Al Nahyan to iron out a visa issue.

In July of the same year, the central banks of the UAE and Ethiopia formally signed a bilateral currency swap arrangement worth up to 3 billion dirhams ($816.79 million).

Also, the Abu Dhabi wealth group ADQ has pledged to spend $35 billion in Egypt, the majority of which would go toward developing valuable land on the North African nation’s Mediterranean coast, as seen in the report by Bloomberg.

In January this year, the Nigerian president also made for Abu Dhabi, to take part in the Sustainability Week, a forum intended to discuss cooperation on energy, climate change, and other similar issues.

Concerning Kenya, the UAE agreed on a deal (Comprehensive Economic Partnership Agreement) with the East African country that is intended to make the UAE a key trade partner to Kenya, ensuring that the East African country has another prime-time export market.