- Kenya has signed an agreement with the Korean government for a Sh17.4 billion loan to ease traffic flow within Nairobi.
- The long-term loan of 40 years will be extended by the Korean Export and Import Bank to be serviced until January 29, 2061.
Kenya has signed an agreement with the Korean government for a Sh17.4 billion loan to ease traffic flow within Nairobi. The long-term loan of 40 years will be extended by the Korean Export and Import Bank to be serviced up to January 29, 2061. An interest rate of Sh0.1 percent will be charged per annum and a service charge of Sh0.1 percent per annum on undisbursed loan amount. The loan, though signed on January 29, 2021, is yet to be disbursed to the Kenyan government.
Disclosing the details in the parliament, the Treasury reported that two loans of Sh10.79 billion ($100 million) and Sh6.59 billion ($61 million) were signed at an exchange rate of Sh107.85 to finance the Nairobi Integrated Transport System (ITS) and Loop Line in the Nairobi Urban Core project under the Ministry of Transport. The Kenyan government had hired the services of the Japan International Corporation Agency to undertake consultancy services for the design, tender documentation and implementation supervision of an intelligent transport system. The consultant will provide 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.
Kenya has been facing massive traffic snarl-ups especially at the junctions of 61 city roads spending huge resources in the last couple of years in a bid to contain the traffic problems.
