Meru County signs Sh880m loan to upgrade roads

PHOTO | JOSEPH KANYI | FILE Meru county governor Peter Munya addressing journalists on August 31, 2013.

What you need to know:

  • The agreement will see a contractor from Malaysia undertake upgrading of five kilometres of road in each of the nine constituencies
  • The loan will attract an interest of 3 per cent per annum with a repayment period of 10 years

Meru County has signed a Sh880 million loan with the Exim Bank of Malaysia to finance upgrading of 50 kilometres of roads.

The deal was arrived at last week during a visit to the Asian country by a delegation of representatives from three counties including Bungoma and Bomet.

The agreement will see a contractor from Malaysia tarmac five kilometres of roads in each of the nine constituencies in the county.

“We were able to negotiate and sign an agreement upfront for 50 kilometres and a memorandum of understanding for the balance of 250 kilometres. Infrastructure is critical for development of the county,” said Meru County Governor Peter Munya on Thursday.

The county government plans to tarmac 300 kilometres of road, with 50 kilometres to be completed in the first phase. Of the 50 kilometres set to be tarmacked, the county will finance construction of 10 kilometres at a cost of Sh22 million a kilometre from its resources.

In its budget for the current financial year, Meru County has allocated about Sh900 million for roads.

The loan will attract an interest of three per cent a year and will be repaid in 10 years.

The county is also in talks with Danish investors for development of wind energy at the border of Meru and Isiolo.

The area has been identified by the Kenya Electricity Generating Company as having good wind speeds that can be harnessed for electricity.