In a bold move to jumpstart stalled infrastructure projects, Kenya has secured a Ksh. 40 billion loan from China.
This funding will address the backlog of incomplete projects across 15 counties, which has sparked growing concern among citizens and stakeholders.
Ndindi Nyoro, Chair of the National Assembly Budget Committee, announced the loan, stressing the urgency to resume work on these vital infrastructure initiatives.
Reportedly, Kenya has faced increasing pressure over its many infrastructure projects that have stalled due to financial constraints and bureaucratic delays.
The new loan is aimed at enabling contractors to resume work as early as September 2024.
This development is crucial, as many of these projects remain less than 20% complete since their inception. The government has pinpointed several key projects to benefit from this funding.
Among the prioritized projects are the Tot-Sigor Road in Elgeyo Marakwet and Baringo, Kanyuambora Road in Embu, and roads in Kirinyaga and Makueni.
These projects will improve transportation networks, boost trade, and ultimately foster economic growth in the regions they serve.
Furthermore, the Ksh. 40 billion loan serves as a strategic move to alleviate the financial burden on the Kenyan government.
Currently, the government struggles with Ksh. 150 billion in pending bills related to infrastructure.
This backlog has raised concerns about project sustainability and the overall health of the nation’s finances.
However, the influx of funds from China will likely facilitate timely project completion, thus reducing the backlog and improving public spending efficiency.
Consequently, this move aims to restore contractor and investor confidence, as payment uncertainties and timeline delays have previously deterred new projects.
To formalize the loan agreement, President William Ruto will travel to China, marking a significant moment in Kenya’s infrastructure development strategy.