Parliament Scrutinises Privileges for Africa Finance Corporation and Ford Foundation

On October 8 the National Assembly’s Committee on Delegated Legislation examined draft Privileges and Immunities orders for the Africa Finance Corporation and the Ford Foundation, with Prime Cabinet Secretary and Foreign Affairs Cabinet Secretary Musalia Mudavadi attending the hearing.

The meeting was chaired by Ainabkoi MP Samuel Chepkonga, assisted by vice-chair Robert Gichimu, and included Likuyani MP Innocent Mugabe, each raising concerns about how the proposed exemptions might affect national sovereignty and anti-corruption oversight.

Chepkonga asked why the AFC should be afforded special treatment that other foreign financial institutions, such as Nigerian banks, do not receive, while Gichimu sought clarification on whether the privileges envisioned for the AFC are comparable to those granted in other jurisdictions.

Mugabe requested assurance that the Ethics and Anti-Corruption Commission would retain the power to intervene in any corruption investigations involving the corporation.

Officials responded that the AFC would operate under Kenyan law within a framework modelled on the arrangements that govern diplomatic missions, although the specific parameters of that framework were not disclosed.

AFC Director Fola Fagbule urged the committee to endorse the order, arguing that establishing a regional office in Nairobi could generate approximately KSh260 billion in new investment and create opportunities for local businesses and infrastructure financing.

Fagbule noted that the corporation has already directed more than KSh168.92 billion into Kenyan energy, transport and industrial projects since 2017 and aims to mobilise over KSh259.68 billion across the region within the next three to five years.

Current Kenyan projects supported by the AFC include the Dongo Kundu Integrated Industrial Park and the Naivasha Special Economic Zone II, and the corporation’s involvement is linked to the LAPSSET corridor, which Mudavadi cited as an example of needed investment.

Mudavadi appealed to the committee to view the proposals as strategic opportunities that Kenya should seize to strengthen its position in Africa’s evolving financial architecture.

MPs also stressed that any privileges granted to the Ford Foundation must be clearly defined, limited, and must not undermine national sovereignty, the application of Kenyan law or existing accountability mechanisms.

The Ford Foundation order follows a Cabinet-approved plan from February to open a Nairobi office, and the draft order is subject to the same parliamentary review.

The committee has not yet concluded its scrutiny; the draft orders must still pass through further parliamentary stages before any privileges and immunities can take effect, and the precise limits of the protections have not been made public.