Kenya gets Sh14.6bn loan, grants from Japan for infrastructure

Japan has offered Kenya Sh14.6 billion in loan and grants for upgrade of Ngong Road, expansion of roads linked to the Port of Mombasa and purchase of patrol boats.

A loan of Sh11.8 billion will be used to complete the second phase of the Mombasa Port access roads and Sh2.4 billion grant will be spent on the second phase of the construction of dual carriageway on Ngong Road.

READ: New phase of Ngong dual road starts next month

Another Sh273 million grant will be used to buy 12   patrol motor boats to police Lake Victoria and Indian Ocean waters.

Treasury secretary Henry Rotich said the loansourced on concessional terms will be “a big boost” to the infrastructure development and economic growth of the country.

“This loan which is an additional funding for the Mombasa port area roads will be a big contribution to higher economic development of the country by improving transport, industrialisation and tourism. The terms are very friendly making it a convenient source for our infrastructure funding,” Mr Rotich said.

The loan has a repayment period of 30 years and will attract a 1.2 per cent interest rate.

Ngong Road dualling had also received about Sh1.4 billion from Japan for its ongoing first phase from the national Library to the Ring Road Kilimani junction.

Construction of the 3.4 kilometre stretch, which is the second phase, is expected to start next year.

Kenya Airways seeks shareholders’ nod on revival plan

Locally-assembled Mercedes passenger bus models launched