By Macharia Kamau
Kenya has received a Sh3.1 billion concessional loan from Belgium for an electrification project in Nyanza and an e-government project that is expected to increase connectivity between county and national government offices, Treasury has said.
The Belgians are at the same time pushing for a double taxation treaty with Kenya that they say will advance trade and investment between the two countries.
The loan
Some Sh1.6 billion of the loan will be used to set up electricity distribution infrastructure in the areas of Sondu, Homa Bay and Kisii.
The private network that will connect all counties will take up Sh1.2 billion.
“The Sondu-Homa Bay-Kisii Rural Electrification Project will construct an electric power distribution line to cover 85 kilometres. The power line will consist of a 132 kilowatt electricity distribution line and associated sub-stations located in Kisumu, Homa Bay and Kisii counties,” said Kamau Thuge, Treasury Principal Secretary.
He was speaking yesterday during the signing of the loan agreement with Belgium’s Deputy Prime Minister Didier Reynders.
Thuge added that the loan for the power project had a grace period of 10 years. It will be repayable over 20 years and will not attract any interest.
The money for ICT development will be used to complete the e-government private network/county connectivity project that has already commenced. The first phase of the project is scheduled for completion at the end of this month.
The first phase connects 28 county headquarters to the National Optical Fibre Backbone Infrastructure (NOFBI), with the eventual aim of connecting the 47 counties and 18 central government ministries.
The network will facilitate communication - voice and data - between the counties and central government.
“The project involves installation of communication equipment and applications in 17 county office headquarters and 18 national ministry headquarters in Nairobi,” said Thuge.
Modernise communication
“The project, when complete, will not only modernise the government’s communication technology infrastructure but also increase efficiency in provision of key government services.”
The Belgian Deputy Prime Minister said his government is keen on entering into a double taxation treaty Kenya, saying it would eliminate a major obstacle for firms with business interests in the two countries.
He added that such a treaty would assist the two governments to nab traders and companies that have been evading taxes.
