The World Bank on Thursday announced that it had given Kenya a $1 Billion (Sh100 Billion) concessional loan for energy, transport and water infrastructure projects in North Eastern Kenya.
World Bank concessional loans usually have zero or quite low interest rates and repayment periods of between 25 to 40 years with a 5 or 10 year grace period.
The billion dollar loan will primarily be spent in the counties of Garissa, Isiolo, Lamu, Mandera, Marsabit, Samburu, Tana River, Turkana, Wajir and West Pokot which have been marginalized in the past, especially before the advent of devolution, causing them to lag behind in key development indicators.
“These infrastructure investments are laying the ground for additional operations that will enable sustainable livelihoods with targeted support to farmers and pastoralists in the region and expanded support to the most vulnerable households through regular cash transfers,” the World Bank noted in a statement.
The funds will be spread across 6 key projects.
[caption caption="World Bank Vice President Makhtar Diop with President Uhuru Kenyatta at State House on 03/05/2018"]
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Half of the amount, $500 million, will go towards a 740 km stretch of the Isiolo-Wajir-Mandera road corridor and enhancing access to the internet in that area.
Another $150 million will be spent on an off-grid energy access programme expected to provide 1.2 million people with electricity and add 96 Megawatts to the national grid.
The average poverty rate in the selected counties stands at 68 percent, which is significantly less than the national average of 36 percent.
“Given the significant needs, more needed to be done in a targeted and coordinated manner if the Bank was to support the Government of Kenya in its efforts in the north and northeastern region,” the World Bank statement read in part.
All this was announced as President Uhuru Kenyatta met Makhtar Diop, the World Bank Vice President for Africa at State House.
[caption caption="Treasury CS Henry Rotich, World Bank Vice-President Makhtar Diop and President Uhuru Kenyatta at State House on 03/05/2018"]
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