Prime Cabinet Secretary Musalia Mudavadi has announced that the Indian Export-Import Bank (EXIM) bank is set to establish its East Africa Representative office in Nairobi.
In a statement on Tuesday, November 28, the CS stated that the move was a win for Kenya to accept the request from the Indian bank.
Further, Mudavadi explained that the bank will create job opportunities for many Kenyans as weel as empower them with much needed skills in the industry.
Also, he noted that it would give Kenya the competitive edge as a financial hub among its East African counterparts and support national development.
“The establishment of India Exim Bank in Nairobi is a confirmation of the confidence in Kenya and the competitive edge of Nairobi as a regional financial hub.
“In the short-term, the Bank will create employment opportunities for Kenyans and deepen their skills in the sector. In the long-term, collaboration between Kenya and the Bank will support national development priorities,” he stated.
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Kenya’s Previous relationship with the Indian Bank
On the other hand, the CS stated that the bank had earlier been providing financial support for Kenya that went towards development projects.
“India Exim Bank has previously provided financial support to Kenya with respect to development projects in the energy, textile and apparel and agricultural sectors and small and medium scale enterprises,” added Mudavadi.
Earlier in June 2023, the state-owned bank, announced that it was assisting over 300 small Indian businesses in expanding their operations in African countries.
“Africa is becoming a big consuming continent and there, Indian companies have huge potential to find a market,” Harsha Bangari, the Managing Director of Export-Import (EXIM) Bank of India stated in a past interview.
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Also, Bangari stated that EXIM Bank was working with several African governments as part of India’s economic diplomacy, including on a metro train project in Mauritius, bus exports from India to Senegal, and an electricity project in Gambia.
Kenya Receiving Loans from India’s Exim Bank
Notably in September 2018, the bank offered the Kenyan government a loan of Ksh10 billion to help mechanize agriculture.
The government noted that the money would be used to buy tractors for small-scale farmers for hire and high-quality potato and pyrethrum seedlings.
Also, the funds were meant to be used to purchase and distribute 11 million high-yield potato seedlings and 26 million pyrethrum seedlings.
