Kenya seeks ksh17bn loan that it will start repaying in 2031
The Kenyan government has signed a ksh17.4 loan from the Korean government that it will start its repayment in the next ten years.
Kenya is planning to use the loan to finance the establishment and improvement of road junctions in Nairobi to ease traffic.
The National Treasury signed two loans from the Korean Export and Import Bank. The first loan was ksh10.79 billion and the other was ksh6.59 billion.
The country signed the loans at an exchange rate of Sh107.85 to finance the Nairobi Integrated Transport System (ITS).
The government moved to the Korean Export and Import Bank for the long-term loan which taxpayers will service to January 29, 2061.
The loan was signed on January 29, 2021, will be repaid in 60 semi-annual installments starting July 20, 2031.
“The loan will attract an interest rate of Sh0.1 percent per annum and a service charge of Sh0.1 percent per annum,” Treasury told the National Assembly.
Kenya is seeking to put in place an Integrated Transport System and Loop Line within the Nairobi Core project.
The loan comes at a time when Kenya is trying to spend a lot of its resources to improve its public transport system. the country also borrowed another ksh6.4 billion to construct a Bus Rapid Transit (BRT) system within Nairobi.