Ambassador of Japan to Kenya, Toshitsugu Uesawa. Kenya has signed a
Sh14.6 billion deal in loans, grants and aid with the government of
Japan to boost infrastructure and security ventures. FILE PHOTO | NMG
Summary
- The deal includes Sh11.8 billion loan for completion of the second phase of Mombasa Port Road development project, and two grants of Sh2.4 billion and Sh273 million.
- The Sh11.8 billion loan has a repayment period of 30 years and will attract a 1.2 per cent interest rate, according to the agreements signed between Treasury Cabinet Secretary Henry Rotich and Japanese Ambassador Toshitsugu Uesawa.
- Kenya has received approximately Sh512.7 billion in financial and technical assistance from the government of Japan since the beginning of bilateral ties between the two nations in 1964.
Japan has offered Kenya Sh14.6 billion
in loan and grants for upgrade of Ngong Road, expansion of roads linked
to the Port of Mombasa and purchase of patrol boats.
A
loan of Sh11.8 billion will be used to complete the second phase of the
Mombasa Port access roads and Sh2.4 billion grant will be spent on
the second phase of the construction of dual carriageway on Ngong Road.
Another Sh273 million grant will be used to buy 12 patrol motor boats to police Lake Victoria and Indian Ocean waters.
Treasury
secretary Henry Rotich said the loansourced on concessional terms will
be “a big boost” to the infrastructure development and economic growth
of the country.
“This loan which is an additional
funding for the Mombasa port area roads will be a big contribution to
higher economic development of the country by improving transport,
industrialisation and tourism. The terms are very friendly making it a
convenient source for our infrastructure funding,” Mr Rotich said.
The loan has a repayment period of 30 years and will attract a 1.2 per cent interest rate.
Ngong Road dualling had also received about Sh1.4
billion from Japan for its ongoing first phase from the national Library
to the Ring Road Kilimani junction.
Construction of the 3.4 kilometre stretch, which is the second phase, is expected to start next year.
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