Kenya has signed a credit deal with the World Bank totaling US$300M (KES 25.5 Billion) which will be used to fund the National Urban Transport Improvement Project (NUTRIP). The concessionary loan would be repaid within 30 years at the rate of 0.75%, with a grace period of 10 years.
Speaking during the loan signing, Finance Minister Njeru Githae said the new Credit that will make the World Bank supported portfolio to increase to a total commitment of USD 3.705 billion (KES 314.9 billion).
Githae said the primary objective of the National Urban Transport Improvement Project (NUTRIP) is to support Government efforts on the de-congestion of traffic on the Northern Corridor Road that passes through Nairobi. He added that NUTRIP will facilitate regional and international trade and also improve road access from Jomo Kenyatta International Airport to Rironi.
Road upgrades
Githae said the funds will help in major road upgrades in the city and around the country to boost economic activities. He said the section of Uhuru Highway from Nyayo Stadium through to Museum Hill will be transformed into a Decker Standard and there will also be grade separation of all major junctions on Uhuru Highway. The project will lay the foundation for the development of Mass Transit Systems (MRT) that will benefit the low-income population in Nairobi and beyond.
“The new infrastructure developments proposed under the project is important to Nairobi’s future as a modern commercial growth centre generating urban capital in the region. I am sure Kenyans will welcome this project with joy given the traffic congestion being experienced in Nairobi lately.” Githae said.
Railway and Highway upgrades
The components of the loan include KES 18.98 Billion support to Kenya National Highways Authority (KeNHA) to expand and upgrade road section JKIA Turnoff – Rironi road and Kisumu City northern bypass road among other roads. It also includes support to Kenya Urban Roads Authority (KURA) and Kenya Railways Corporation (KRC) to develop selected Mass Transit Corridor and the construction of Meru Town bypass roads. It will also provide technical advisory services towards realization of the commuter rail systems in Nairobi at a cost of KES 5.075 Billion.
Githae said the process of selecting a consultant to support the implementation of the decision has begun, with financing from the World Bank with regard to the establishment of a clear regulatory framework to support and deepen private sector participation over and above the current railway concession.
Githae urged the Ministry of Roads and the Ministry of Transport and three other implementing agencies (KeNHA, KURA and KRC) to take the necessary steps to ensure timely execution of the project. He said the success of the project will assist in putting in place infrastructure facilities that will not only ensure Kenyans enjoy them but also attract more investments and thus creating more employment opportunities for our young Kenyans.