This archive report was first published on 4 October 2019.
AfDB Approves KSh 23 Billion Loan to Expand Sagana Road to Dual Carriage ¶
On October 4, 2019, the African Development Bank (AfDB) announced that it had approved a KSh 23 billion loan to expand the Sagana road to a dual carriage way.
The loan, which is part of the bank's efforts to improve Kenya's infrastructure, will be used to convert the 84km Kenol-Sagana-Marua Road in central and eastern Kenya from a two-way single carriageway into a dual bypass.
According to the bank, the five-year project will be completed in 2025 and will enhance traffic flow between the port city of Mombasa and major centres like Nairobi.
The project is also expected to ease transport between Nairobi and the Mount Kenya region, and ultimately Ethiopia.
The total project cost is KSh 30 billion, of which KSh 23 billion will be financed by the Bank Group, representing 69% of the total cost.
Another 12% will come from the Africa Growing Together Fund, set up by the Bank and the People's Bank of China in 2014, while the remaining 19% will be financed by the Kenyan government.
The project is part of broader government efforts to improve the country's infrastructure, including the construction of 1,304 kms of new roads in recent years.
The Bank's present portfolio in Kenya consists of 38 operations, totaling around KSh 330 billion ($3.3 billion).
