Kenya gets Ksh.1.8 billion hospital upgrade grant from China

Kenya has received a RMB 100 million (Ksh.1.8 billion) grant from China to boost the healthcare sector.

Treasury Cabinet Secretary John Mbadi signed the grant agreement with the Chinese Ambassador to Kenya, Guo Haiyan, in Nairobi on Thursday.

Beneficiary institutions include Londiani Referral Hospital in Kericho County, Baringo County Referral Hospital, Kilifi Hospital and Misikhu Hospital in Bungoma.

Others are the Bildad Kagia Hospital in Murang’a County and Kaimosi Farmers Training College in Vihiga.

The grant comes just days after Mbadi said Kenya is forced to “look inward” moving forward and not rely on aid as it struggles to get its finances back on track after heavy domestic and external borrowing, resulting in high debt-servicing costs.

“Things are not easy — our fiscal space has no legroom anymore, especially as foreign countries like the USA have stopped funding us, and we soon expect the EU to follow suit,” the minister said on Tuesday.

“We will be left to look inward, and this is the worst period for Kenya. Some time back, we decided to take loans as a country, and these loans have now reached their peak.”

Kenya is faced with about Ksh.10 trillion in external and domestic debt, and two-thirds of the country's annual revenue goes to debt servicing, leaving critical sectors like healthcare and education underfunded.

Last week, the country and the International Monetary Fund (IMF) agreed to ditch the ninth and final review of its current lending programme, which was set to expire next month.