, NAIROBI, Kenya, Aug 20 – Kenya’s new financial agreement with China will help achieve the long-term Vision 2030, which is expected to transform the country to a middle income society in the next 17 years.
Vision 2030 Delivery Secretariat Director General, Mugo Kibati, said the Sh425 billion deal had unlocked the financial constraints that were dragging the project down.
Kibati explained that the financial assistance would provide for the timely attainment of key development projects aligned to Vision 2030, which had been halted due to lack of funds.
“The Vision 2030 Delivery Secretariat notes with pride that the signing of these funding agreements will provide a new lease of life to some flagship projects including the new Mombasa-Nairobi-Malaba Standard Gauge rail project,” Kibati said.
Speaking from Beijing, where he has accompanied President Uhuru Kenyatta, Kibati added that the trade agreement followed six months of government-to-government negotiations between Kenyan and Chinese technocrats.
President Kenyatta said that the railway line would provide better access to markets within Kenya, Uganda, Rwanda, Burundi and the eastern Democratic Republic of Congo.
“Later this month I will be meeting some of my colleagues from the East African region all having to do with infrastructure like the Port of Mombasa and the railway line connecting us so that we can have ease in the cost of doing business,” he said on Saturday.
The proposed Standard Gauge Railway line is one of the key flagship projects under the Vision 2030 national development strategy and is categorised under the auxiliary Enablers and Macro pillar.
Alongside the Social, Economic and Political pillars, the Enablers and Macro Pillar, covers those projects, interventions and initiatives whose impact ultimately cuts across all the other three pillars.
Of the Sh425 billion, Sh340 billion will go towards covering economic partnerships, wildlife protection and the standard gauge railway.
Another Sh85 billion will go towards energy-related projects.
“These agreements deepen our practical cooperation,” President Xi Jinping told his Kenyan counterpart shortly before the agreements were signed.