Kenya is in talks with Brazilian Development Bank in a bid to secure Sh168 billion ($2 billion) credit to support its development projects.
President Kibaki who is in Rio de Janeiro in Brazil attending the United Nations Conference on Sustainable Development held talks with the President of the Brazilian Development Bank (BNDES), which is the second largest development bank in the world.
During the talks, Kibaki expressed Kenya’s interest in establishing a credit-line with BNDES to finance priority projects in the country noting that Kenya would be willing to go up to Sh168 billion ($2 billion) on this credit line.
He cited agricultural development, infrastructure and energy as among the priority sectors requiring financing.
With respect to infrastructure, Kibaki said the construction of roads is an important part of Kenya’s development agenda. In this regard, the President appealed for partnership with Brazilian Government and investors in infrastructure development to decongest the city of Nairobi.
In the energy sector, he sought the support of the Brazilian Development Bank in financing the production of sugar, ethanol and co-generation of electricity.
The President of the Brazilian Development Bank said the bank will extend a soft loan of Sh6.72 billion ($80 million) towards the mechanization of agriculture in Kenya.
The bank will extend further financing in excess of Sh12.6 billion ($150 million) towards the construction of link roads and interchanges to decongest the city of Nairobi.
With this commitment, Kenya now awaits the results of the review that the Brazilian Government and the Brazilian Development Bank are carrying out in conjunction with the Ministry of Nairobi Metropolitan Development for the construction of interchanges to decongest the city of Nairobi.