Kenya Secures Ksh 40 Billion Chinese Loan to Restart Stalled Road Projects

The Kenyan government has secured a Ksh 40 billion loan from China to reignite construction on 15 critical road projects that have been left unfinished across more than ten counties. The move comes as part of a broader effort to alleviate the strain caused by incomplete infrastructure that has burdened various regions for years.

Kiharu MP Ndindi Nyoro, who also serves as the Chairman of the Budget and Appropriations Committee, revealed that construction is set to resume next month and will span over three years. This funding agreement follows intense negotiations, initiated during President William Ruto’s visit to China last October. “We have identified 15 projects that have been stagnant, with some advancing no further than 20 percent. We expect contractors to be on-site by September,” Nyoro stated.

The announcement addresses mounting public frustration over the many unfinished projects initiated by both the previous Jubilee administration and the current Kenya Kwanza government. The situation has become so pressing that legal experts, like David Morara, have begun touring the country to spotlight these delays.

President Ruto has made it clear that his administration’s priority is to complete existing road projects rather than launching new ones. According to Nyoro, the Ksh 40 billion infusion will also help alleviate the financial burden posed by pending bills and the backlog of stalled projects. The government has already earmarked Ksh 60 billion in this financial year to focus on ongoing work, particularly through local contractors.

The problem of unfinished infrastructure has been exacerbated by delays in budget disbursements and reductions, leaving many contractors unable to continue their work. The National Treasury currently owes contractors more than Ksh 150 billion for completed projects, a situation that has only worsened over the past decade.

Among the road projects that will be prioritized are several key routes across different counties, including a 64.5-kilometer stretch in Kisii County and a 75.92-kilometer road project in Nandi County. These and other roads have been highlighted as critical to the economic development of the regions they serve and will finally see progress after years of stagnation.

This latest funding is a step towards addressing the long-standing issue of stalled infrastructure, but the government faces the challenge of ensuring that these projects are completed within the proposed timeline, avoiding the pitfalls that led to their delay in the first place.

  • Gad Oteba

    Gad Oteba is an investigative journalist with close to a decade of experience in uncovering stories that matter. His work focuses on corruption, governance, and social justice issues in Africa. Driven by a commitment to transparency and accountability, Gad aims to bring hidden truths to light and ensure that the voices of the marginalized are heard. Through his rigorous reporting and in-depth analysis, he strives to make a lasting impact on the communities he covers.

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    One thought on “Kenya Secures Ksh 40 Billion Chinese Loan to Restart Stalled Road Projects

    1. Why is it that we struggle to fund our infrastructure projects effectively, while we continue to sink deeper into debt?

      Consider:
      ==The Great American Interstate Highway Project was funded through a combination of federal and state funds. Here are the key figures:
      – Total length: approximately 47,714 km (29,645 miles)
      – Total cost (1956-1992): $114 billion USD (approximately $425 billion in today’s value, adjusted for inflation)
      – Cost per km (in today’s value): approximately $8.9 million USD per km
      The cost was funded through a combination of:
      – Federal funds (90%): $102 billion USD (approximately $384 billion in today’s value)
      – State funds (10%): $12 billion USD (approximately $41 billion in today’s value)
      ==President Biden’s infrastructure projects, specifically the Infrastructure Investment and Jobs Act (IIJA), are funded through a combination of sources:
      – Total funding: $1.2 trillion USD
      – Allocation for roads and highways: $350 billion USD
      – Total length of roads and highways to be improved: 32,000 km
      Cost per km (in today’s value):
      – Approximately $10.9 million USD per km
      Funding sources:
      – Repurposed unused COVID-19 relief funds: $210 billion USD
      – Superfund revenues: $50 billion USD
      – Public-private partnerships: $100 billion USD
      – Other sources (e.g., bonds, taxes): $840 billion USD

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