The government has received Sh36.7 billion concessional loans from French Development Agency (AFD) to finance various development programmes.
National Treasury Cabinet Secretary Henry Rotich Friday signed four credit facilities with AFD that will be committed to water and energy sectors and funding reforms in the public finance management.
The signed loans have grace periods of between five and eight years, while repayment period is between 10 years and 25 years.
Rotich explained that the developments projects to be financed will help the government in actualizing the Big4 Agenda in the next five years.
We are delighted to note that the AFD’s country’s strategy 2017-2022 recognizes the priorities of the Kenyan government and we are working with development partners to review both ongoing and pipeline projects with a view to aligning them to the Big4 development Agenda, he said.
The government, the CS added, will also submit new proposals related to Big Four development agenda to the AFD for consideration and among the projects to be funded
include Mwache Dam project in Mombasa County which is designed to improve drinking water and sanitation systems at the cost of S4.7 billion.
Other projects include the Sh3.6 billion Public Finance Management Reforms Project, S1.2 billion reinforcement of electricity transmission network and Sh7.2 billion Meru Wind Project to be implemented by the Kenya Electricity Generating Company (KENGEN).
Rotich further confirmed that the government will sign two other credit facility agreements once they are ready. I wish to urge the implementers of these projects to ensure they are completed in good time so that the intended beneficiaries can utilize the services satisfactorily as the government commits to provide its financial contribution as per the financing agreements, he added.
AFD chief executive officer Remy Rioux said France is committed to enhancing its bilateral relationship with Kenya.
We know the value of working together and assisting each other’s needs, said Rioux, adding that the new development schemes are meant to offer innovation in the identified economic sectors.
Rotich commended that AFD for its continued financial support to the development priorities in the country.
AFD is one of the leading bilateral development Partners to Kenya and has made commitments amounting to Sh264billion in the last twenty 20 years to support energy, water and sanitations, roads and transport, environment, agriculture, private sector development and governance sector, added the CS.
Source: Kenya News Agency