Kenya plans to merge three public financial institutions to create a large bank dedicated to the financing of infrastructures projects,  The East African revealed on October 12, 2018, citing sources close to the case.  

According to an ad hoc committee recently set by the public treasury, the country considers Industrial and Commercial Development Corporation (ICDC),  Industrial Development Bank (IDB) and Tourism Finance Corporation (TFC) that would be merged to create a giant financial group baptized Kenya Development Bank (KDB).

In September, the public treasury launched a tender process to select a consulting cabinet to advise the government during that operation.

Though Kenya Development Bank is still being discussed, sources cited by The East African indicate that this bank plans to raise long-term funds from international financial institutions based on a banking model similar to the one used by East African Development Bank or the African Development Bank.

Kenya seeks funds for its large infrastructure project of $20 billion to be implemented in the framework of its development plan “ Vision 2030 ”.

According to World Bank, Kenya’s infrastructure financing deficit can not be covered by public revenues since this debt has now risen to Ksh5,000 billion (about $50 billion), representing about 57% of the country’s GDP.