Kibaki gets Sh20b from Brazil bank

June 24, 2012

, NAIROBI, Kenya, Jun 24 – President Mwai Kibaki has secured almost Sh20 billion in advances from the second largest development bank in the world.

The Brazilian Development Bank (BNDES) extended a Sh6.7 billion ($80 million) soft loan towards the mechanisation of agriculture in Kenya and Sh12.6 billion ($150 million) for the construction of link roads and interchanges to decongest the city of Nairobi.

Kibaki, who was in Rio de Janeiro in Brazil for the United Nations Conference on Sustainable Development, held talks with the President of the development bank to establish a credit-line of up to Sh167.6 billion ($2 billion) to finance priority projects in Kenya.

President Kibaki cited agricultural development, infrastructure and energy as among the priority sectors requiring financing.

Noting that Kenya is part of the Brazilian More Food (Mais Alimentos) Programme, President Kibaki thanked the Brazilian Government for including Kenya in its programme of mechanization of agriculture.

With respect to infrastructure, President Kibaki said the construction of roads is an important part of Kenya’s development agenda and appealed for partnership with Brazilian Government and investors in infrastructure development to decongest the city of Nairobi.

In the energy sector, President Kibaki sought the support of the Brazilian Development Bank in financing the production of sugar, ethanol and co-generation of electricity.

With this commitment, Kenya now awaits the results of the review that the Brazilian Government and the BNDES are carrying out in conjunction with the Ministry of Nairobi Metropolitan Development for the construction of interchanges to decongest the city of Nairobi.

Touching on the production of sugar and ethanol, the President of the Brazilian Development Bank recalled that the Government of Kenya had held talks on the same with former President of Brazil, Lula da Silva, during his State visit to Kenya in July 2010.

Following these talks, the President expressed the Banks readiness to cooperate with the Kenya and was looking forward to further consultations in this regard.

Latest Articles

Live prices

Stock Market

Most Viewed