× Digital News Videos Health & Science Opinion Education Columnists Lifestyle Cartoons Moi Cabinets Kibaki Cabinets Arts & Culture Gender Podcasts E-Paper Tributes Lifestyle & Entertainment Nairobian Entertainment Eve Woman TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

Arab Bank gives Kenya Sh810m loan for road project

By | July 21st 2010

By James Anyanzwa

Kenya has received a loan of Sh810 million ($10 million) from the Arab Bank for Economic Development in Africa (Badea).

The proceeds of the loan agreement will co-finance the construction of the Nuno-Modogashe road in the northern part of the country.

The other co-financiers of the project, which is estimated to cost Sh8.1 billion ($100 million) include Abu Dhabi Fund ($10 million), Kuwait Fund ($20 million), Organisation of Petroleum Exporting Countries (OPEC) Fund ($12 million) and Saudi Fund ($25 million).

The Government is expected to contribute $23 million towards the project.

"The main objective of the project is to open up the Northern region to the rest of the country and at the same time enhance livestock production and provide a stimulant to socio-economic activities in Northern Kenya," Deputy Prime Minister and Minister for Finance Uhuru Kenyatta told reporters after signing the loan agreement in Nairobi yesterday.

International highway

Mr Uhuru said the Government will extend the Nuno-Modogashe road to Mandera town at the border of Kenya and Ethiopia and make the road an international highway that will enhance trade between the two countries.

The Nuno-Modogashe road, which measures 146 km long, traverses northern Kenya, a rich pastorist hinterland that produces 65 per cent of livestock and livestock products in Kenya.

"The Government is committed to doing roads in the country," said Roads Minister Franklin Bett.

To date, Badea has spent Sh9.2 billion in Kenya since its inception in 1975. Uhuru said infrastructure has been identified as critical to spurring economic growth under the vision 2030 economic blueprint.

Share this story
Al Shabab Attacks 20/07/10
Diabetes: Insulin now an essential drug
Listing NCDs is a relief to Kenyans like 65-year-old Kahuho Mathai from Nyeri County, who was diagnosed with type 2 diabetes and high blood pressure.