Kenya is set to receive a Sh3.4 billion loan from Israel to finance the purchase of a modern missile defence system, as part of broader efforts to strengthen national security amid rising terror threats.
The loan is intended to upgrade and modernise Kenya’s military capabilities. It will go toward acquiring new military equipment, including covering part of the payment for a previous Sh1 billion loan used to procure the Spyder Air Defence System.
The Spyder system is a high-tech missile shield developed by Israel’s Rafael Advanced Defence Systems Ltd. It is capable of intercepting aircraft, drones, helicopters, and guided weapons.
The agreement underscores deepening defence ties between Kenya and Israel, particularly in the face of growing security threats in the region.
The funds are expected to be disbursed to the Ministry of Defence in July 2025 and will support Kenya’s efforts to boost its aerial defence capacity—especially amid increasing threats from groups such as Al-Shabaab and regional instability involving Iran-backed Houthi rebels.
Noordin Haji, Director-General of the National Intelligence Service, has warned of a heightened risk of terrorist attacks, citing possible collaboration between Al-Shabaab, ISIS, and Houthi forces using advanced weaponry.
“As part of this expansion, ISIS and Al-Shabaab have been collaborating with the Houthis, gaining access to advanced weaponry and sophisticated training. The spillover effects are now being felt in Africa, making the continent an emerging epicentre of terrorism,” Haji said.
The financial deal signals Kenya’s shift toward diversifying its military suppliers, moving away from traditional partners such as the United States and Turkey, which have previously provided aircraft, drones, and armoured vehicles.
The military modernisation effort is also aimed at aligning the Kenya Defence Forces (KDF) with international standards required for participation in United Nations peacekeeping missions—which often come with financial support.