EU gives Sh40 billion for road development

By Benson Kathuri

The European Union (EU) has set aside Sh40 billion to fund various projects in the country in the next three years.

According to a country strategy paper and indicative programme agreed between the European Commission (EC) and the Government, most of the money will go to the roads sub-sector.

The EC that is the executive and implementing arm of the 27-member country economic bloc said most of the money would be sourced through the tenth European Development Fund (EDF).

The EC Head of Delegation in Kenya Eric Van Der Linden, however, said the money would be released upon meeting certain conditionality, including effective implementation of the new procurement laws.

He said though the laws met international standards, they must be implemented satisfactorily to maintain donor confidence. According to the strategy signed 18 months ago, 126.8 euros (Sh13.1 billion) will go towards transport infrastructure that would help in regional economic integration.

Other beneficiaries

Another Sh10.2 billion will be used to support agriculture and rural development, while another Sh13 billion will go towards budget support. Linden said another Sh1.6 billion would cover unforeseen needs such as emergency assistance. The financial secretary at Treasury Mutua Kilaka revealed that the EC released Sh3.7 billion in grant form last year for various projects.

"Between 2003 and 2007, the EU availed Sh29 billion to finance interventions under transport, infrastructure, agriculture and rural development and macroeconomic support," he said.

Kilaka said the bloc is also funding the reconstruction of Timboroa-Eldoret-Webuye-Malaba section of the same road at Sh5.9 billion.