The National Treasury has signed a USD 185 million (about Ksh24 billion in the current exchange rates) loan agreement with the Export-Import Bank of China (China EximBank), which will finance the Intelligent Transport System (ITS) Project in Nairobi.
The agreement was signed by Treasury Cabinet Secretary John Mbadi and Deputy General Manager of the Sovereign Business Department, Zhu Jia, on Wednesday, November 26.
"The Cabinet Secretary said that the ITS Project is a critical pillar of Kenya’s integrated transport management framework, designed to modernize mobility across key transport corridors," a statement from the Treasury read.
"The agreement was signed by Hon. Mbadi and Ms Zhu Jia, Deputy General Manager of the Sovereign Business Department, and was witnessed by China EximBank Chairman Mr Chen Huaiyu and PS Chris Kiptoo," it added.
Under the project, the government aims to fit 25 roundabouts in Nairobi with the digital traffic management systems, in a move aimed at reducing traffic police in the country's capital.
The ITS system includes traffic lights, cameras, and sensors, which will monitor traffic flow and optimise traffic signals.
Following the new agreement, Mbadi is optimistic that once installed, the system will be pivotal in improving traffic coordination, reducing congestion in the city, enhancing road safety, shortening travel times, and strengthening the country's digital backbone.
"Mbadi emphasized that these efficiencies will translate into economic savings, increased productivity, and a better experience for millions of road users," the statement read.
"He commended China EximBank for its consistent partnership, acknowledging its instrumental role in supporting landmark infrastructure projects that continue to anchor Kenya’s economic transformation," it added.
China EximBank Chairman Chen Huaiyu assured that the project will also reinforce the healthy diplomatic ties the two countries have had, as well as contribute to Kenya's long-term development.
The agreement comes days after a report from the Treasury revealed that Kenya was supposed to contribute about Ksh6 billion for the project, with the rest of the finances being sourced externally.
Although the project was initially expected to be completed by January 2025, the Treasury says several factors have delayed its execution.
These factors include the pending design work for the installation of the system and the incomplete procurement process for the project’s design and initiation.
