The University of Nairobi (UoN) has secured a loan worth Ksh3.8 billion from a french firm to help in the expansion of their infrastructure.
This comes after the government approved the loan from the Agence Francaise De Development. The firm and the Treasury reached an agreement on credit terms and conditions in 2021.
In a statement that was released by UoN in November 2021, it was revealed that the loan would help the institution in dealing with the financial challenges it has faced in the last years.
“Approximately Ksh4 billion will finance the detailed design, construction, and seed equipment of an Engineering and Science Complex (ESC) in the University of Nairobi.
"An adequate and ambitious environmental certification will be sought for the building,” UoN stated.
The new complex is expected to increase student capacity up to plus 20 per cent, better the faculty-student ratio, and curve down the drop-out rate.
As part of the deal, the University will partner with top French Science and Engineering universities in curriculum development and capacity building.
"An additional grant of approximately Ksh645 million will help with the creation and launch of the new ESC, by supporting the architects' teams in monitoring the building activities, and the pedagogical teams in reviewing curricula and pedagogy.
According to documents presented in Parliament by the Treasury, the loan will attract an interest of 0.25 per cent per year. However, the institution will have a grace period of seven years to repay the loan.
“The interest rate of the loan is 0.25 per cent per annum and a margin of 1.06 per cent and the commitment charge rate is 0.5 per cent per annum,” an excerpt of the documents read.
Financial reports, released in November 2021, detailed that UoN and Kenyatta University were facing a joint deficit of Ksh4.3 billion.