An independent US agency that invests in low and lower middle income countries has retained Kenya among the countries eligible for its yearly grants worth up to Sh56 billion.
The Millennium Challenge Corporation (MCC) picks beneficiary countries based on their records for good governance, making them eligible for development grants mainly channelled through the US Agency for International Development (USAID).
The MCC said Kenya passed the mark for its control of corruption and promoting democratic rights in the country.
The MCC programmes are worth between $400 million (Sh45.24 billion) and $500 (Sh56.55 billion) and must be negotiated with the US government to go through.
“The board selected Kenya and Kiribati to continue developing threshold programmes,” said the board after its meeting on December 14.
“Selection of these countries for the financial year 2022 was based on their continued performance since their prior selection.”
The US government currently provides nearly Sh100 billion in annual assistance to Kenya for several programmes, including healthcare, agriculture, education and security.
Kenya has been a beneficiary of the MCC programme since 2007.
“The decision by MCC’s Board of directors to unanimously select Kenya for a threshold program recognises the Government of Kenya’s commitment to strengthening Kenya’s democratic institutions by combatting corruption, maintaining sound economic policies, and further investing in its citizens,” the MCC said in 2019 after meeting Kenyan officials.
Kenya has also been receiving US aid for its security operations in the region, where it has been partnering with the US in the fight against terrorism and regional security.
The country is also looking to agree on a new trade deal with the US before the expiry of the Africa Growth Opportunity Act, which allows sub-Saharan African countries to export products to the US without tariffs or quotas until 2025.
