Arab Bank gives Kenya Sh810m loan for road project
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.
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.
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