President William Ruto's administration is inching closer to sealing a deal to revolutionise Nairobi's transport system and curb the endemic traffic snarl-ups.
Through a statement released on Thursday, October 27, his deputy, Rigathi Gachagua, revealed that the government was at an advanced stage of concluding talks with a US corporation seeking to bankroll the project.
Millenium Challenge Corporation, Gachagua stated, bought into the government's idea of revamping the Nairobi transport system.
"Atop, is the establishment of Moderna Vaccines Manufacturing Hub in Kenya, the conclusion of the process to allow Millenium Challenge Corporation to release Ksh7.2 billion (USD 60 million) grant towards the improvement of Transport System in Nairobi," Gachagua's statement read in part.
The grant is set to be channelled into different projects in the city, including the railway network, different roads, and even airports.
President Ruto's government is also poised to use the money to revive stalled projects in Nairobi, led by Governor Johnson Sakaja and improve the public transport system.
Gachagua publicised the deal after holding talks with the US ambassador to Kenya, Meg Whitman, and other top government officials from President Joe Biden's administration.
"Kenya and the United States have for many decades shared strong bilateral and multilateral relations. Our cooperation and relations can only grow stronger and deeper for the benefit of our future generations," Gachagua insisted.
The Millennium Challenge Corporation (MCC), which Kenya is seeking a partnership with to offer the Ksh7.2 billion grant, is an innovative and independent US foreign assistance agency that is helping lead the fight against global poverty.
It was established by the US Congress in January 2004 and tasked with delivering foreign assistance to other developing countries.
MCC only offers time-limited grants promoting economic growth, reducing poverty, and strengthening institutions.
"These investments not only support stability and prosperity in partner countries but also enhance American interests. With cost-effective projects, a lean staff, and an evidence-based approach, MCC is a good investment for the American people," MCC states on its website.
President Ruto indicated that his government would cut expenditures and focus on priority projects. The head of state insisted that his government was keen to complete ongoing projects first.
Ruto also pledged to reduce external borrowing to finance government projects while insisting on the need to revive the economy.
