Kenya secures US$14M grant from China for hospital upgrades

KENYA — The government has successfully secured a significant grant of KES 1.8 billion (US$13.92 million) from China, marking a significant step in strengthening Kenya’s economy.

This funding is earmarked for the upgrade of several key hospitals nationwide, aimed at improving the quality of medical services accessible to Kenyans.

The agreement was formally signed at the Treasury Building in Nairobi by Treasury Cabinet Secretary John Mbadi and Ambassador Guo Haiyan from the People’s Republic of China to Kenya.

During the signing ceremony, CS Mbadi emphasized the significance of this grant, noting that it marks a crucial step toward enhancing Kenya’s healthcare infrastructure.

The funds will be allocated to modernize hospitals, including Londiani Referral Hospital, Baringo County Referral Hospital, Kilifi Hospital, Misikhu Hospital, Bildad Kagia Hospital, and Kaimosi Farmers’ Training College.

These facilities play a crucial role in delivering essential healthcare services to rural and underserved communities.

This grant comes at a critical juncture, as Kenya navigates significant financial hurdles, particularly in the healthcare sector.

 The country has faced a notable funding gap following the withdrawal of aid from key international donors like the United States.

This situation has led to job losses among health workers, underfunded facilities, and interruptions in vital health programs addressing issues such as malaria, tuberculosis, and HIV.

Consequently, the Chinese grant is not only a much-needed relief but also underscores the robust bilateral relationship between Kenya and China.

In addition to this grant, Kenya recently secured a KES 40 billion (US$309.47 million) loan from China during President William Ruto’s visit in September 2024.

This loan is designed to complete 15 stalled infrastructure projects across more than ten counties, thereby fostering regional development and economic growth.

China has become Kenya’s largest bilateral lender, and the government’s dependency on Chinese financing is likely to persist, as it has indicated limited alternatives for funding development projects.

As of March 2024, Kenya’s debt to China had reached approximately KES 920.52 billion (US$7.12 billion), primarily directed toward large-scale infrastructure initiatives like roads, railways, and port developments.

Despite facing financial strains and high debt servicing costs, the Kenyan government remains committed to leveraging international partnerships to drive economic growth and improve public services.

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