Kenya receives multi-billion loan from Japan

david nganga

July 4, 2017 6:38 PM

The Kenyan government has signed a deal in loans,grants with Japan to fund infrastructure projects.

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The Kenyan government has received a $140.6 million (Sh14.6 billion) loan from Japan in a bid to boost infrastructure and security ventures.

The funds include an $11.3 million loan to fund the construction of the second phase of the Mombasa Port Area Road Development project and two grants of$23.1 million and $2.6 million.

The two grants will, respectively, be used to expand a three-kilometre stretch on Ngong Road, Nairobi, into a dual road and to buy patrol motorboats for marine police.

Regarding the Mombasa Port Area Road Development, National Treasury Cabinet Secretary Henry Rotich said the funds will go towards the project and enable easy access to the region, mobility and transportation of goods and passengers.

He added that the government will see that the money is used efficiently to ensure the intended economic impacts are fulfilled.

The loan, which will attract an interest of 1.2pc, is to be repaid after 30 years with a grace period of 10 years.

“The signing of these financing agreements is a clear indication of our very strong and close bilateral cooperation between the two countries. We will ensure that it is put to proper use,” Mr Rotich said during the signing of the deal between the CS and the Japan ambassador.

The amount is a follow-up of the $278.8 million loan provided by Japan to fund the project’s first phase in 2012.

david nganga