World Bank approves Sh26b funding to Kenya

By John Oyuke

The World Bank has approved Sh26 billion funding for Kenya to complete upgrading the Mau Summit — Kisumu road section and improve electricity distribution.

The Bank approved Sh20.24 billion ($253 million) to complete the remaining contracts on the Northern Corridor Road section and finance rehabilitation and replacement of infrastructure and public assets damaged during last year’s post-election crisis.

The Bank also approved an additional Sh6.40 billion to help the Government develop the energy sector by improving electricity distribution to less well-off regions.

Only about 18 per cent of Kenyans have electricity in their homes — and in rural areas that figure plunges to just three per cent.

The move to help Kenya upgrade the pot-holed Mau Summit — Kisumu highway increases the Bank’s support for the Northern Corridor Transport Improvement Project (NCTIP) to Sh36.8 billion.

The Bank’s Executive Board agreed initial financing of Sh16.56 billion for the scheme in June 2004.

The Bank’s country director for Kenya, Johannes Zutt said the extra resources would help rehabilitate key sections of the road corridor running between Nairobi and the Ugandan border.

trade link

"This road is not just important for western Kenya, but is a vital trade link for neighbouring landlocked countries, including Uganda, Rwanda, Burundi, the eastern Democratic Republic of Congo and southern Sudan," he said in a statement.

Severe bottlenecks along the northern corridor, including destruction during last year’s post-election crisis have delayed goods and raised the cost of doing business across.