Uhuru Kenyatta led administration has another loan that taxpayers will repay it for the next 40 years.
Kenya signed Sh17.4 billion loan from the Korean government to finance the establishment and improvement of road junctions to ease traffic flow within Nairobi.
According to Uhuru led administration, the State chose the Korean Export and Import Bank for the long-term loan which taxpayers will service to January 29, 2061.
The Treasury signed two loans of Sh10.79 billion ($100 million) and Sh6.59 billion ($61 million) at an exchange rate of Sh107.85 to finance the Nairobi Integrated Transport System (ITS).
The loan, signed on January 29, 2021, is yet to be disbursed to the Kenyan government.
“The loan will…attract interested rate of Sh0.1 percent per annum and a service charge of Sh0.1 percent per annum on undisbursed loan amount,” Treasury said in disclosures to Parliament as quted by The Business Daily
The loans will be repaid in 60 semi-annual instalments starting July 20, 2031.
The Ministry of Transport is seeking to implement the Integrated Transport System and Loop Line in the Nairobi Urban Core project.
The government commissioned Japan International Corporation Agency to undertake consultancy services for the design, tender documentation and implementation supervision of an intelligent transport system.
The junction capacity assessment is aimed at identifying bottlenecks.
Kenya has been spending massive resources in the last couple of years in a bid to contain the notorious traffic snarl-ups especially at the junctions of 61 city roads via wider lanes.
The consultant will also advise of a traffic management plan that will form a basis for the identification of locations and intersections to be fitted with traffic signals and other intelligent transport system devices.
The traffic management plan will inform junction capacity improvements and other safety enhancements.