Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Government

Japan extends Sh11.8Bn loan for Mombasa Port, South Coast link roads

The 17.5Km Dongo Kundu Highway will bypass Mombasa island and the Likoni ferry, connecting Miritini to the South Coast.

NAIROBI, Kenya, Jul 4 – The government of Kenya has received a Sh11.8 billion loan from the Japanese Government to fund the construction of the second phase of the Mombasa Port Area Road Development project.

National Treasury Cabinet Secretary Henry Rotich says the funds will go towards the high priority project, which is expected to offer easy access to the region, mobility and transportation of goods and passengers.

Rotich added that the project will significantly decongest the city of Mombasa by providing an alternative option to the Likoni Ferry by linking the mainland with Mombasa South Coast.

“It will further complement the ongoing expansion of the Mombasa Port, the proposed development of SEZ and therefore contribute to a higher economic development of the country,” he said.

The amount is a follow-up of the Sh28.94 billion loan provided by Japan to fund the project’s first phase in 2012.

The new loan will finance the construction of the 8.9 km road between Mwache Junction and Mteza, and the 6.9 km road between Mteza and Kibundani. It is expected that the new stretch will provide a link between the Mombasa-Nairobi highway and the Likoni-Lunga Lunga Road.

The Yen dominated loan for the entire Mombasa Port Area Road Development project in total now amounts to about Sh36.9 billion.

“Through the completion of this project, the logistics around the Mombasa Port will improve dramatically the development of the Dongo Kindu SEZ,” Japanese Ambassador to Kenya Toshitsugu Uesawa, during the signing of the loan.

The yen credit extended to Kenya is part of the Sh14.6 billion assistance extended to fund different projects in the country.

The loan, which will attract an interest of 1.2pc, is to be repaid after 30 years with a grace period of 10 years

Advertisement. Scroll to continue reading.

Other projects include a Sh2.4 billion grant to fund the dualling of the Nairobi-Dagoreti Corner Section of the Ngong Road, and Sh273 million grant aid for the purchase of patrol motor boats.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...