Kenya gets Sh20bn for roads, agriculture from Brazil bank
Kenya has secured a Sh20 billion loan from the world’s second largest bank, towards construction of roads in Nairobi and to boost agriculture.
Brazilian Development Bank (BNDES) will advance Sh6.8 billion towards mechanisation of agriculture in the country and Sh12.9 billion for construction of road linkages in Nairobi.
The deal was reached during a meeting between President Kibaki and the bank in Rio da Janeiro, Brazil last week.
The president met the bank’s officials on the sidelines of the just-ended United Nations Conference on Sustainable Development.
During the talks, President Kibaki expressed Kenya’s interest in establishing a credit-line with BNDES to finance priority projects in the country, noting that Kenya would be willing to go up to Sh170 billion ($2 billion) on this credit line.
According to the statement from the presidential press unit (PPS), president Kibaki cited agricultural development, infrastructure and energy as among the priority sectors requiring financing.
Noting that Kenya is part of the Brazilian More Food (Mais Alimentos) Programme, President Kibaki thanked the Brazilian government for including Kenya in its programme of mechanisation of agriculture, the statement from PPS said.
With respect to infrastructure, President Kibaki said construction of roads is an important part of Kenya’s development agenda.
In this regard, the President appealed for partnership with Brazil and investors in infrastructure development to decongest Nairobi.
In the energy sector, the head of State sought the support of the bank in financing the production of sugar, ethanol and co-generation of electricity.
With this commitment, Kenya now awaits the results of the review that the Brazilian government and the Brazilian Development Bank are carrying out in conjunction with the ministry of Nairobi Metropolitan Development for the construction of interchanges to decongest the city of Nairobi.
