This archive report was first published on 18 October 2021.
On October 18, 2021, Kenya signed a Sh. 17.4 billion loan from the government of South Korea to redesign road junctions within Nairobi. The loan was taken from the Korean Export and Import Bank.
The loan, which was applied for in January 2021, is yet to be disbursed to Kenya. The National Treasury signed two loans of Sh. 10.79 billion and Sh. 6.59 billion to finance the Nairobi Integrated Transport System (ITS).
According to the National Treasury, the loan will attract an interest rate of 0.1 percent per annum and a service charge of 0.1 percent per annum on undisbursed loan amount. The two loans will be repaid in 60 semi-annual installments, with payments starting from July 20, 2031.
The loan comes at a time when Kenya is inching towards public debt worth over Sh. 8 trillion. The funds will be allocated to the Ministry of Transport's 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.
