Washington-Nairobi Vision Initiative must benefit Kenya's economy

By Robert Mutasi

Kenya has made a great milestone by entering into an agreement of Washington-Nairobi Vision Initiative with the United States of America.

The main aim of the agreement was to collaborate financially with the US which will enable Kenya and other third countries to easily access finance with lower interest rates.

President William Ruto reviewed the partnership through Washington-Nairobi Vision during his tour in Washington in May 2024.

The vision intends to provide affordable financing to Kenya that will enhance the development for private as well as public sector projects.

Funding mechanisms like the IDA21 of World Bank program, debt swap arrangements and Special Drawing Rights are provided through this collaboration.

The aim of the mechanisms are to combat financial constraints that will promote fiscal stability. If the government will consider fully implementing these measures, the economic growth will foster.

The Washington-Nairobi Vision has got numerous economic benefits to this nation in many ways.

For instance, Special Drawing Rights [SDRs] and debt swaps have terms that are favorable contrary to traditional methods of borrowing.SDR and debt swaps have lower interest rates.

This encourages Kenya to borrow funds and finance their projects and again it will be easier for the country to pay since interest rates are friendly.

Let the government utilize this agreement for the benefit of the country's development rather than self interests that might lead the nation's economy stag.

Sectors such as health, education and infrastructure are vital ones to be boosted, upgraded and renovated so as to benefit the public.By doing so, The Washington-Nairobi Vision is going to make sense.

This international collaboration will solve the issue of funds through enabling the continuation of the stalled projects in the country.

For this to be fully and well implemented, the government through respective authorities should introduce stringent measures to make sure funds are utilized well.

Such measures will reduce corruption and embezzlement of public funds that tend to create jobs both in public and private institutions.