The African Development Bank (AfDB) on Tuesday approved an 89 million euros (91.3 million U.S. dollars)  loan to boost Kenya's economic recovery efforts.

According to the continental lender, the loan will provide funding for the second phase of Kenya's Competitiveness and Economic Recovery Support Program (CERSP) that was approved by the Bank in June 2021, and will help the country to free up fiscal space to address other priorities in its economy.

Kenya's economy took a hit due to the global economic disruptions caused by the COVID-19 pandemic.

The country is also part of many other globally that have been affected by the ongoing Russian military operation in Ukraine.

According to IMF, CERSP supports reforms under three components; attaining fiscal sustainability by enhancing anti-money laundering and e-procurement frameworks and oversight over the operations of state-owned enterprises; strengthening industrial development and competitiveness to deepen the contribution of the manufacturing sector in line with the "Big Four" agenda while fostering climate resilience and green growth; and enhancing economic and social inclusion by furthering the social protection system and universal health coverage.

"The African Development Bank is happy to continue supporting the Government of Kenya's reforms agenda that aim to strengthen the war against corruption and sustain inclusive growth while enhancing the  environment for infrastructure development which is the backbone of the economy. Reforms that the Bank has supported through Budget Support Operations have enhanced the bankability of large infrastructure  projects," said Nnenna Nwabufo, the African Development Bank's Director-General for East Africa.