Kenya has signed Sh17.4 billion loan from the Korean government to finance the establishment and improvement of road junctions to ease traffic flow within Nairobi.
The government moved to the Korean Export and Import Bank for the long-term loan which taxpayers will service to January 29, 2061.
The Treasury signed two loans of Sh10.79 billion ($100 million) and Sh6.59 billion ($61 million) at an exchange rate of Sh107.85 to finance the Nairobi Integrated Transport System (ITS).
The loan, signed on January 29, 2021, is yet to be disbursed to the Kenyan government.
Business daily reports, “The loan will…attract interested rate of Sh0.1 percent per annum and a service charge of Sh0.1 percent per annum on undisbursed loan amount,” Treasury said in disclosures to Parliament.
The loans will be repaid in 60 semi-annual instalments starting July 20, 2031.
The Ministry of Transport is seeking to implement the Integrated Transport System and Loop Line in the Nairobi Urban Core project.