On Monday, March 18, the government through the National Treasury secured a Ksh22 billion (150 million euros) loan from the Italian government.
The national treasury announced that the concessional loan would support the government's budget.
Among the delegates present during the signing of the deal in Nairobi included the Italian Minister of Foreign Affairs Stefano Gatti, Italian Ambassador to Kenya Roberto Natali and Kenya’s Treasury Principal Secretary Chris Kiptoo.
“This support is contingent upon the successful implementation of the reform measures outlined in the 6th Devt Policy Operation DPO 6,” read part of the treasury’s statement.
At the centre of the meeting were the development prospects with particular attention to sustainable coffee supply chains.
While confirming the deal, the Italian government stated that the multilateral agreement would be implemented within the framework of the Italy-Kenya Multi-Year Indicative Plan signed in 2023 and in line with the Mattei Plan.
During their visit to Kenya, the Italian delegates also visited the Coffee Research Institute, where the delegation learned about and appreciated the varieties of Kenyan coffee.
The latest announcement comes three weeks after the government secured a Ksh20 billion loan from the French government.
In a deal signed by PS Chris Kiptoo, the government noted the funds would go towards revitalising the Nairobi Commuter line.
Additionally, the funds will be used to implement automated fare collection, improve civil works, and procure ICT equipment such as servers and redundant storage.
“In a major step towards sustainable urban development, a Euro 128 million Loan Agreement for Nairobi's Commuter Line was signed,” read part of a statement by the National Treasury.
In January this year, President William Ruto endorsed Italy's plan for closer cooperation with Africa saying it was evidence that Europe was taking the continent seriously despite criticism over the limited initial funding.
While speaking during the Italy-Africa summit in Rome, Italy on January 29, he noted that the so-called Mattei plan, named after the late founder of Italian energy giant Eni, represented a good start.
"Every journey begins with one simple step. And I think that the most important step has been made, that we are recalibrating our relationship with Italy as a continent," Ruto noted.
