This archive report was first published on 20 September 2019.
On September 20, 2019, Kenya secured a significant loan from Japan to boost its economic development. The loan, worth Sh82.7 billion, will be used for the construction of a bridge over the Likoni Channel in Mombasa and the development of a Special Economic Zone in Dongo Kundu.
According to Ukur Yattani, the acting Finance Cabinet Secretary, the loan will be used to construct the Mombasa Gate Bridge, which will improve trade and tourism in the region. The bridge will provide an alternative to the congested Likoni Ferry and allow for the free movement of marine vessels.
Yattani noted that the remaining portion of the loan will be used to develop the Special Economic Zone, which aims to boost the manufacturing sector in the region. The project will also enhance container handling capacity at the port and create jobs for 27,000 people.
The loan will attract an interest rate of 0.1 per cent, a repayment period of 28 years, and a grace period of 12 years. Japan's Prime Minister, Shinzo Abe, has stated that Japan aims to boost its investment in Africa, with a focus on private-sector investment.
The port city of Mombasa is a gateway to east and central Africa, processing imports and exports for Kenya and several other countries. The city's ferries carry about 300,000 people a day, and the new economic zone is expected to begin construction in 2021 and take four years to complete.
