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Kiambu Road Dualling: Kenya Secures Ksh 38.3b Loan From China to Expand Carriageway

Kenya has secured yet another loan from China to expand Kiambu Road into a dual carriageway. The government signed a fresh deal with China Exim Bank, offering KSh 38.3 billion to expand the 25-kilometre road.

Chinese loan

This is the second loan from the bank after it funded the Mombasa-Naivasha Standard Gauge Railway (SGR). PAY ATTENTION: Сheck out the list of featured Business Leaders of the Year 2022 Chinese loan to Kenya dropped to $6.56 billion (KSh 182.97 billion) in December 2022, down from $7.05 billion (KSh 948.93 billion) in June 2021, Business Daily reported.

Addressing the national assembly parliamentary committee on infrastructures, Roads Principal Secretary Joseph Mbugua said KSh 7.4 billion will be used to buy land for expansion. The expansion of the road will be executed by M/s Sinohydro Corporation Limited of China.

Kenya’s debt

This came even as Kenya’s debt maturing this year hit over KSh 9.2 trillion. The government is facing a budget deficit in the current fiscal year, a move that has forced it to go for fresh loans. The Budget and Appropriations Committee chair Ndindi Nyoro said the government will have to borrow KSh 700 billion to plug the budget deficit.

Cash crunch

This is against President William Ruto’s plans to cut external borrowing, which he said have plunged the country into a cash crunch. President William Ruto confirmed the delay in salaries, saying his administration will not borrow to settle recurrent expenditures. Institute of Economic Affairs (IEA) Programme Officer Noah Wekesa noted that current revenue shortfalls in the country are a result of heavy debts and pending bills.

Source: tuko

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