China gives Kenya a Sh747m grant

By James Anyanzwa

China has given Kenya a Sh747 million grant to build a Sh689.5 million hospital in Eastlands, Nairobi and a Sh57 million maize-flour processing factory in Bomet District.

Acting Finance minister John Michuki said the proceeds of the grant would also be used to maintain Moi International Sports Centre Kasarani, which was constructed through the Chinese support in 1987.

"We are very grateful and appreciate that this special consideration is in response to the Kenya Government’s request for development support and genuine partnership," Michuki told reporters, after signing the two economic and technical agreements at Treasury building yesterday, with China’s Minister for Commerce, Chen Deming .

He said the construction of a 100 bed general hospital in Eastlands would help to decongest Kenyatta National Hospital especially in handling referral cases.

China is one of Kenya’s major donors whose cumulative official development assistance to the country currently amounts to Sh 29.45 billion. Kenya has a long-standing and strong relationship with China covering key aspects of development cooperation in the economic, political as well as socio-cultural areas.

Over the years, Kenya has benefited substantially from this development cooperation through financial and technical support from the Government of China.

Other Projects

The Chinese Commerce Minister, also met President Kibaki at his Harambee House office. President Kibaki thanked China for financing the construction of several road by-passes, to the tune of $145 million.

They include the Nairobi Southern by-pass ($56 million) Nairobi Northern by-pass ($35 million), Nairobi Eastern by-pass ($42 million) and the city’s link roads ($15.4 million).

The road projects are meant to decongest Nairobi of traffic, and promote development of the peri-urban areas. China is also rehabilitating the JKIA-Uhuru Highway-UNEP road.

Last year the Government stepped up campaigns to woo Chinese investors so as to benefit from the $1 billion (Sh77 billion) China-Africa Development Fund.

The business scope of the fund mainly includes equity and fund investments, fund management, investment management and consulting services.

 

 

 

---