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Thursday, 19 June 2014

Kenya to get Sh52bn grant from the EU

The EU will grant Sh52 billion to Kenya in order to fund transport and agriculture. National Treasury Cabinet Secretary Henry Rotich and EU development commissioner Andris Piebalgs, will sign an agreement on Thursday 19th June. This agreement will state the spending plan for the money over the next seven years.
The funds will be spent to improve Nairobi’s public transport infrastructure. The goal is to fight congestion, increase food production, improve drought management and governance. Ethiopia, Tanzania and Somalia are also expected to sign this kind of agreements with the EU as part of the 11th European Development Fund.
The EU is already granting Sh3 billion to build link roads in Nairobi. Between Sh8 billion and Sh10 billion will be spend for roads.  Sh22.5 billion will be granted to boost the country’s food production and address the difficulties raised by climate change.
Kenya has asked the EU to ease stringent requirements for the funds in order to improve their spending by the countries receiving the money. The agreement between Kenya and the EU will be signed during the on-going meeting in Nairobi that gathers government officials from ACP countries to discuss trade with the EU.
During the meeting, the ACP countries will seek greater access to the EU market for bananas, cotton and sugar. The post-2015 development agenda will also be discussed.

Source: Daily Nation