NAIROBI, Kenya – Kenya has secured a RMB 100 million (Sh.1.8 billion) grant from China aimed at strengthening its healthcare sector.
The agreement was signed on Thursday in Nairobi by Treasury Cabinet Secretary John Mbadi and Chinese Ambassador to Kenya, Guo Haiyan.
The grant will fund infrastructure and equipment for the following healthcare facilities:
- Londiani Referral Hospital in Kericho County
- Baringo County Referral Hospital
- Kilifi Hospital
- Misikhu Hospital in Bungoma County
- Bildad Kagia Hospital in Murang’a County
- Kaimosi Farmers Training College in Vihiga County
The grant comes at a time when Kenya is grappling with significant financial constraints.
Treasury CS John Mbadi acknowledged the country’s fiscal challenges, stating that Kenya must focus on domestic solutions as foreign aid declines.
“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,” said Mbadi earlier this week.
Kenya faces Sh.10 trillion in domestic and external debt, with two-thirds of its annual revenue going toward debt servicing.
This has left critical sectors like healthcare and education underfunded, making grants like this one crucial for sustaining essential services.
Last week, Kenya and the International Monetary Fund (IMF) decided to terminate the ninth and final review of the current lending program, which was set to expire next month.
The move underscores the government’s efforts to stabilize its finances amid rising debt-servicing costs.
The partnership with China highlights Kenya’s reliance on alternative funding sources to meet its development needs.
The Chinese Ambassador, Guo Haiyan, emphasized the importance of continued collaboration between the two nations.
