Government signs concessional loan for Modogashe-Wajir road

Kuwait government has extended a Sh. 2.1 billion concessional loan to finance the Modogashe-Wajir road.

During a signing ceremony, the National Treasury and Planning Cabinet Secretary (CS), Henry Rotich said that the fund from Kuwait is additional finance for the proposed road project, whose total cost is approximately Sh.12 billion (USD120) to finance the expansion of Modogahse-Wajir road.

The road is being co-financed by Kuwait Sh.2.1 billion (USD21million), Saudi Fund Sh.2.5 billion (US$25 million), BADEA Sh.2 billion (US$20 million) OFID Sh.2.5 billion (US$25m) and the Abu Dhabi S.5 billion (US$15m).

The project is important in not only consolidating further our development cooperation, but also contributing towards government efforts in the improvement of the road network in the north eastern part of the country, said Rotich.

The CS assured the financiers of government commitment to good governance and accountability on the provided resources.

Rotich confirmed that the 2018/19 budget is ready and is more focused on the big four agenda which focuses on food security, affordable housing, manufacturing and affordable healthcare for all.

The big four agenda main objective is to create jobs, shared prosperity and reducing of poverty levels across the country. We therefore look forward to enhance our partnership with Kuwait Fund towards the achievement of goals set in the big four agenda, added Rotich.

He said the government has already secured funds from the World Bank for the 700 kilometers road that will transform the north eastern part of the country and open up regions to Somali.

Mahamd Al Omar, Deputy Director of the Kuwait Fund for Economic Development said Kenya has been in good relationship with Kuwait since, 1997 and that the loan agreement of 8.3 million dollars will go a long way to support the Country.

The Director General (DG) of the Kenya National Highway Authority (KENHA), Eng. Peter Mundinia thanked the Kuwait government for the support, saying so far Kuwait have supported 310 kilometres from Modogashe to Wajir out of the total of 744 kilometres.

He said out of the 157 kilometres that is being supported by the fund, 50 kilometres has already been tarmacked and they expected to finish the rest within time.

The progress is so far well and the contractor is on course, Eng. Mundinia said and confirmed that there are 5 financiers for the project and Kuwait is the first one to sign, adding that once all have completed the agreement, they will be able to start and complete the 744 kilometres.

Source: Kenya News Agency