Treasury signs KES 17.9 B loan with AfDB
28 January 2014, 13:56
Nairobi - The African Development bank signed two loan agreements with the government of Kenya amounting to KES 17.62 billion and two protocol grant agreements of KES 225 million to go towards the construction of Thwake Multipurpose dam and Outer Ring Road project in Nairobi respectively.
Speaking in Nairobi on Monday during the signing of the loan agreement, the Cabinet Secretary for Finance, Henry Rotich said that the Outer Ring Road project involves the improvement of the existing single carriage road to a two – lane dual carriage way complete with service roads, grade separated intersections, pedestrian foot over bridges and cycle tracks on the entire length of the road.
Rotich said that the 13-Kilometer project, upon completion, is expected to directly enhance traffic circulation and eliminate traffic bottlenecks to various economic activity centers such as the industrial zone, and the vast populous residential areas of Eastlands.
“The government has today received a total of KES 17.85 billion from the AfDB where the first two agreements we have signed are to support the Thwake Multipurpose Water Development programme which is under the Ministry of Water, Environment and Natural Resources financed at the loan of KES 7.8 billion and a grant of KES 153 million,” said Rotich, adding that the dam will also be used to supply water to Konza City, Makueni and Kitui towns as well as for irrigation and power generation.
He said the second loan of KES 9.8 billion and a grant of KES 71.1 million will improve the Outer Ring Road to ease traffic congestion in the Eastern part of Nairobi and provide social infrastructure such as market stalls for informal traders.
The bank's Director for Eastern Africa Resource center, Gabriel Negatu said that the partners are formed both by the government’s priorities for economic development and the banks vision for Africa as the continent's premier homegrown development financier.
The loan will be repayable over a period of 40 years at an interest rate of 1 percent per annum
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