The African Development Bank on Wednesday handed a boost to President William Ruto's legacy blueprint after approving a Ksh12.3 billion (€73 million) loan to Kenya.

According to the continental body, the money will be channeled towards enabling the country's economic recovery, boosting industrial development and competitiveness, and supporting Kenya's medium and long-term goals.

The financing will cover the fiscal year 2023/24 fiscal year.

"The program will continue to support Kenya's medium- and long-term development through three components: fiscal consolidation to secure the viability of the public finances, strengthening industrial development and competitiveness, and improving economic and social inclusion," read a statement issued by the bank.

In a statement, Nnenna Nwabufo, the Bank Group's Director General for East Africa emphasised that the funds will allow Kenya to deal with the effects of external shocks such as wars in foreign countries.

"Kenya is pursuing the vigorous recovery of its economy after the pandemic and is currently faced with significant shocks. The country is facing its worst drought in 40 years and the consequences of the Russian invasion of Ukraine," she stated.

Further, the funds will cushion Kenya from the aftereffects of the pandemic and guarantee economic recovery. 

Officials from the bank reiterated that the organisation will continue to support Kenya's plans in 3 strategic phases.

AFDB listed fiscal consolidation to secure the viability of the public finances as one of the components, while others are strengthening industrial development and competitiveness and improving economic and social inclusion.

According to the bank, phase 1 and II of the program allowed Kenya to fill in the funding gaps in the financial years 2021/22 and 2022/23. This enabled the country to economically recover after the pandemic.

Meanwhile, in phase III, the funds will also support the rollout of the electronic procurement system, the Public Finance Management Amendment Bill 2023 to improve the debt management framework.

It will also support the privatization bill and ownership policy addressing the challenges faced by state-owned enterprises, the social protection policy, and the rollout of the enhanced single registry for Social Protection in 29 counties.

"These measures will help consolidate the progress made during the first two phases of the program. The program comes in support of the Kenyan government's strategy to extend the average duration of the public debt portfolio in order to reduce its servicing cost over the long term,"

"It will also support government efforts to promote competitiveness and employment and to support the livelihood of the most vulnerable," read part of the statement.

This comes after Kenya received more financial support from the World Bank and the International Monetary Fund (IMF) to boost the economy.