The government, through the National Treasury, announced on Friday, March 1, that it had secured a Ksh20 billion loan (Eur 128 million) from the French government.
In a deal signed by Treasury Principal Secretary Chris Kiptoo, the government stated that the funds would be allocated towards the revitalization of the Nairobi Commuter line.
“In a major step towards sustainable urban development, a Euro 128 million Loan Agreement for Nairobi's Commuter Line was signed,” read part of a statement by the National Treasury.
The signing ceremony was witnessed by French Ambassador to Kenya Arnaud Suquet, Mohamed Daghar, Kenya’s Principal Secretary for the State Department for Transport, and French Minister for Ecological Transition Christophe Béchu.
According to the treasury, the funds will be allocated for the rail project, which includes upgrading signalling, communication systems, train operating infrastructure, and automating level crossings.
Additionally, the funds will be used to implement automated fare collection, improve civil works, and procure ICT equipment such as servers and redundant storage.
The agreement between the two states was finalized following the conclusion of the 5-day United Nations Environment Assembly (UNEA-6) summit held in Nairobi from February 26 to March 1.
The commuter line aims to enhance the city's transportation system by integrating with an expanded central railway station. The railway line will feature bus rapid transit (BRT) lines and stations, along with a new matatu terminus to facilitate smoother entry and exit from the city.
Treasury's latest announcement comes three days after the ministry claimed the government had taken Ksh223 billion in loans in the last five months, between September 2023 and January 2024.
The 11 loans were intended to enhance financial support for various government projects and parastatals.
Among the beneficiaries of these loans is Kenya Power, which received a capital injection aimed at bolstering access to electricity.
