Kenya has secured Ksh81 billion funding from the World Bank depsite criticism and reports that international partners were concerned about widespread corruption in the country.
The Ksh81 billion loan was approved by the World Bank board on September 8, 2020 to fund the Horn of Africa Gateway Development Project (HoAGDP).
The project is expected to improve the movement of people and goods, digital connectivity and access to social services for over 3.2 million people living in the North Eastern region where the Isiolo-Mandera Regional Road Corridor traverses.
The World Bank will finance the upgrading of 365km of the 740-km Isiolo-Mandera Regional Road Corridor and 30km of spur roads, while the upgrading of the remaining sections will be financed by other development partners.
The HoAGDP will also finance the laying of a fiber optic cable along the entire 740-km corridor with spurs to local communities; trade facilitation measures, such as border management systems and construction of border posts; the provision of basic socio-economic infrastructure for communities living along the corridor; institutional strengthening; as well as emergency response measures in case of a disaster or catastrophe during the life of the project.
Kenya was given a 5-year grace period for the loan whose maturity period is 30 years.
“The potential of Northeastern Kenya as a transit and regional trade facilitation zone is presently not fully exploited.
“This transformative project will integrate the region and enhance security, inclusion, and a sense of equity, which the communities living in this underserved region of Kenya have desired for a long time. Successful implementation of the project will require the support of the leadership and communities of the region,” said Josphat Sasia the Lead Transport Specialist and Task Team Leader.
The upgraded road, the fiber optic connections, and the provision of basic social services will attract investments, facilitate regional and domestic trade, create jobs, and improve information sharing and access to internet-based opportunities.
Treasury CS Ukur Yattani, during the National Assembly leadership retreat at Ole Sereni Hotel, Nairobi in August stated that the country's debt portfolio stood at Ksh6 trillion which is almost 60% of Kenya's GDP.
He also gave a positive outlook of the country's economy, expressing optimism that the economy was performing better than expected at 4.6%.
