Kenya, July 2 -- Kenya is getting a loan of Sh3.4 billion from Israel to help fund about 70% of the Ministry of Defence's budget for the financial year 2025/26. This information comes from budget documents shared in Parliament.
The loan is meant to update and improve Kenya's military. It will help buy new military equipment, including a part of the payment for a previous Sh1 billion loan used for the Spyder Air Defence System.
This system is a high-tech missile shield created by Israel's Rafael Advanced Defence Systems Ltd. This agreement shows that Kenya and Israel are strengthening their defence relationship, especially with rising security threats in the region.
The Spyder system can protect against different airborne threats like planes, helicopters, drones, and smart bombs.
It has been tested in real battle situations, including Israel's defence against Iranian missile and drone attacks in April 2024 and June 2025. This shows it can effectively stop incoming threats.
Kenya is focusing on modernising its military. The Kenya Defence Forces (KDF) plans to spend Sh166.8 billion on new equipment in 2024, an increase from Sh147.37 billion in 2023.
The loan will be sent to the Ministry of Defence in July 2025, and it will help Kenya improve its ability to defend against aerial attacks, especially with rising threats from groups like Al-Shabaab and instability involving Houthi rebels supported by Iran.
Noordin Haji, the Director-General of the National Intelligence Service, has recently warned that there is an increased risk of terrorist attacks, including potential cooperation between Al-Shabaab, ISIS, and Houthi forces using advanced weapons.
The Spyder system can adjust its setup to track and stop threats from all directions, which makes it very important for maintaining security in the region.
Public opinion is mixed; some people appreciate the stronger partnership between Kenya and Israel, while others are worried about relying on foreign loans for military expenses.
This loan follows a previous Sh1 billion loan from Israel in 2024 for the same system. The Ministry of Defence has also asked for another Sh3 billion to finish buying it.
This financial deal shows that Kenya is trying to get military supplies from different places, moving away from traditional suppliers like the United States and Turkey, who have provided aircraft, drones, and armoured vehicles.
This agreement fits into Kenya's five-year plan to spend Sh7 billion each year on upgrading security forces and improving its role in UN peacekeeping.
As Kenya faces a challenging security environment, this Sh3.4 billion loan will help the KDF deal with new threats using advanced technology. However, some experts warn that increasing military spending could raise worries about a possible arms race in the region, given Kenya's growing defence budget. This agreement is expected to be finalised soon and represents an important step towards Kenya's goal of military self-reliance.
Published by HT Digital Content Services with permission from Bana Kenya.