The funding received by Kenya from European sources declined last year as a result of the European economic crisis. Spain, which has been one of the hardest-hit countries, reduced its contributions by 29%. France, which has never previously reduced its contributions had a 3% reduction in funding. Even Britain, which has made considerable efforts to maintain the level of its giving through the crisis, had a slight reduction in its contributions.
Kenya’s receipts from tax collections in the past financial year have been $100 million less than budgeted, and the current year’s budget assumes external funding of around $2.3 billion including the contributions from European countries, so the prospects of a balanced budget to support the country’s ambitious infrastructure program seem to be diminishing. Funding from European sources for health programs is also declining.
China and Japan, on the other hand, have recently provided funding to Kenya for roads and water projects, and the Kenyan government has been seeking assistance from East Asian countries to help fund the infrastructure projects needed to achieve the official Vision 2030 goals. Nonetheless, the level of new funding received from East Asia is not likely to be sufficient to balance the reductions in funding from Europe.