Kenya has secured a major boost to its position as a regional investment hub after Africa Finance Corporation (AFC) formally opened its first regional office in Nairobi, a move expected to unlock over Sh258 billion for infrastructure and industrial projects across East Africa.
The new office follows the signing of a Host Country Agreement between the government and AFC, marking a step aimed at expanding financing for large-scale projects and strengthening economic links across the region.
The deal was signed on Thursday by Prime Cabinet Secretary and Foreign Affairs Cabinet Secretary Musalia Mudavadi and AFC President and Chief Executive Officer Samaila Zubairu, in a ceremony witnessed by President William Ruto on the sidelines of the AFC Annual General Meeting.
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Under the agreement, AFC plans to mobilise more than Sh258 billion over the next three to five years, focusing on transport corridors, energy, special economic zones, and digital infrastructure. The Nairobi office is expected to play a central role in coordinating these investments and accelerating project delivery across interconnected markets.
“The Africa Finance Corporation (AFC) and the Government of Kenya have signed a Host Country Agreement establishing AFC’s first regional office in Nairobi, aimed at scaling infrastructure investment and industrial development across East Africa,” the statement said.
President Ruto said the partnership strengthens Kenya’s standing as a preferred investment destination and a gateway to regional growth. He noted that the collaboration will support the rollout of key projects tied to national priorities, especially in infrastructure and industrial development.
Zubairu said the Nairobi presence will improve how projects are developed and delivered by allowing faster origination and better structuring of investments.
“The establishment of the Nairobi office positions Kenya as a strategic hub for infrastructure financing, leveraging its role as a regional centre for logistics, finance, and technology,” the statement said.
AFC noted that the office will enable it to expand capital deployment across East Africa while deepening engagement with governments and private sector players. The move is also expected to enhance coordination with local partners, making it easier to identify and execute large-scale projects.
The corporation already has a strong track record in Kenya, having committed over Sh167.7 billion since 2017. These investments have supported projects in energy, transport, and industrial development aimed at boosting economic growth and strengthening regional integration.
Among the key projects backed by AFC are the Dongo Kundu Integrated Industrial Park and the Naivasha Special Economic Zone II, both seen as critical in expanding manufacturing capacity and improving trade infrastructure.
AFC said opening the Nairobi office reflects confidence in Kenya’s economic outlook and its strategic role in linking East African markets. The expansion also aligns with wider efforts to improve infrastructure networks, enhance connectivity, and attract long-term funding for development.
The agreement is expected to deepen cooperation between Kenya and AFC in priority sectors such as energy generation, transport corridors, industrial zones, and digital systems. It comes as African economies increasingly turn to private sector financing to close infrastructure gaps and drive industrial growth.
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