Kenya is writing a Sh17 billion loan to redesign city intersections

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Kenya is writing a Sh17 billion loan to redesign city intersections


Nairobi skyline. FILE PHOTO | NMG

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  • Kenya has signed a US $ 17.4 billion loan from the Korean government to fund the construction and improvement of road junctions to facilitate the flow of traffic in Nairobi.
  • The government switched to the Korean Export and Import Bank for the long-term loan that taxpayers will service through January 29, 2061.
  • The Treasury Department signed two loans of Sh10.79 billion ($ 100 million) and Sh6.59 billion ($ 61 million) at an exchange rate of 107.85 Shutter to fund Nairobi’s Integrated Transportation System (ITS).

Kenya has signed a US $ 17.4 billion loan from the Korean government to fund the construction and improvement of road junctions to facilitate the flow of traffic in Nairobi.

The government switched to the Korean Export and Import Bank for the long-term loan that taxpayers will service through January 29, 2061.

The Treasury Department signed two loans of Sh10.79 billion ($ 100 million) and Sh6.59 billion ($ 61 million) at an exchange rate of 107.85 Shutter to fund Nairobi’s Integrated Transportation System (ITS).

The loan, signed on January 29, 2021, has yet to be disbursed to the Kenyan government.

“The loan will … attract interest of Sh0.1 percent per year and a service fee of Sh0.1 percent per year on the unpaid loan amount,” the Treasury Department said in disclosures to Parliament.

The loans will be repaid in 60 half-yearly installments from July 20, 2031.

The Ministry of Transport wants to implement the Integrated Transport System and the Loop Line in the Nairobi Urban Core project.

The government hired the Japan International Corporation Agency to provide consulting services for the design, tender documents and implementation monitoring of an intelligent transport system.

The assessment of the connection capacity aims to identify bottlenecks.

Kenya has invested enormous resources in recent years to curb the notorious traffic cramps, especially at the intersections of 61 city streets via wider lanes.

The consultant will also create a traffic management plan that will provide a basis for identifying locations and intersections to be fitted with traffic lights and other intelligent traffic system devices.

The traffic management plan will provide information on intersection capacity improvements and other safety improvements.

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