Afreximbank steps in after IMF, World Bank delay Kenya's funds

Cairo-based African Export-Import Bank (Afreximbank). [iStockphoto]

The African Export-Import Bank (Afreximbank) has stepped in to provide emergency funding to Kenya and other regional economies, the bank’s vice president said on Monday.  

This follows the withholding of disbursements by the International Monetary Fund (IMF) and the World Bank amid mounting stringent conditions by the Bretton Woods lenders, even as Kenya confronts widening economic shocks over the Middle East conflict.  

The Afreximbank’s $10 billion (Sh1.29 trillion) Gulf Crisis Response Programme (GCRP), launched in March, is already being tapped by East African nations reeling from the economic fallout of the escalating Middle East conflict, Afreximbank Vice President Denys Denya told reporters. 

“We’ve already seen uptake, especially from East African countries Kenya, Ethiopia, and Tanzania. They have taken up so far,” Denya said without providing additional details.  

Kenya stands to benefit from the facility aimed at sustaining imports of fuel, food, fertiliser and pharmaceuticals after traditional multilateral lenders paused funding amid concerns over fiscal discipline and debt sustainability.  

It was not immediately clear how much Kenya has tapped from the facility. The National Treasury did not immediately respond to The Standard’s requests for confirmation. 

The IMF and World Bank halted disbursements to Kenya in recent weeks amid mounting worries over the government’s widening fiscal deficit and rising borrowing costs, according to three sources with direct knowledge of the matter.

The IMF has, in public statements, listed tough new conditions for Kenya to proceed with stalled talks for a new bailout.  

The halt has left President William Ruto’s government scrambling for alternative dollar liquidity to finance essential imports, with the shilling coming under renewed pressure. 

Denya said the Gulf crisis had exacerbated supply chain disruptions, driving up costs for fuel and food staples across the continent. If the conflict is prolonged, the effects will be felt far beyond East Africa, he warned. 

“But we anticipate that if this is prolonged, you will have the effects being felt across the entire continent, and the $10 billion will be used up very quickly,” Denya said.

Asked about the response to the Gulf Crisis Response Programme and whether there had been any uptake of the facility, he replied: “We’ve already seen uptake, especially from East African countries – Kenya, Ethiopia, and Tanzania. They have taken up so far.” 

Private sector data released last month showed Kenya’s business activity contracted for the first time in seven months, with firms citing higher fuel and transport costs and disruptions to international trade linked to the war. 

Afreximbank, which has its roots in supporting African trade, previously rolled out a $4 billion (Sh516.60 billion) Ukraine crisis facility under which it disbursed $39 billion (Sh5.037 trillion) across Africa.

Bank officials say the new Gulf programme builds on that experience, offering guarantees, letters of credit and direct funding. 

The bank’s total assets exceeded $48.5 billion (Sh6.264 trillion) in 2025, up 21 per cent from the previous year, with net income growing 19 per cent to $1.2 billion (Sh154.98 billion), according to its financial results published in March. 

Analysts say Kenya’s ability to quickly access the funds will depend on presenting bankable projects and meeting the facility’s terms.

But with traditional funding lines frozen, the Afreximbank facility offers a rare buffer against external shocks for an economy already grappling with squeezed consumers and rising business costs.