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.
According to the National Treasury Cabinet Secretary Henry Rotich, 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.
He says 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.
CS, “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.” 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.
The Japanese Ambassador to Kenya Toshitsugu Uesawa during the signing of the loan says, “Through the completion of this project, the logistics around the Mombasa Port will improve dramatically the development of the Dongo Kindu SEZ.”
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.