Kenya has agreed a Sh14.6 billion deal in loans, grants and aid with the government of Japan to boost infrastructure in terms of road construction and security ventures.
The deal is said to include Sh11.8 billion loan for completion of the second phase of Mombasa Port Road development project, and two grants of Sh2.4 billion and Sh273 million, Businessdailyafrica.com reports.
The two grants, respectively, will be used to expand a three-kilometre stretch on Ngong Road, Nairobi, into a dual road and to buy patrol motorboats for marine police.
The Sh11.8 billion loan has a repayment period of 30 years and will attract a 1.2 per cent interest rate, according to the agreements signed between Treasury Cabinet Secretary Henry Rotich and Japanese Ambassador Toshitsugu Uesawa.
Mr Rotich said the government will see that the money is used prudently to ensure the intended economic impacts are realised .
“The signing of these financing agreements is a clear indication of our very strong and close bilateral cooperation between the two countries. We will ensure that it is put to proper use,” Mr Rotich said.