May 18, 2022

State borrows Sh6.4bn from Korea for Bus Rapid Transport

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The State has borrowed Sh6.4 billion from the Korean government to finance the Bus Rapid Transport (BRT) being implemented across the city.
The loan from the Korean Export and Import Bank will allow the state to launch the six BRT corridors in Nairobi on time.
Taxpayers will service the long-term loan from the Korean Export and Import Bank to January 29, 2061.
The Treasury signed the Sh6,365,150,000 loans at the current exchange rate of Sh107.85 on January 29, 2021.
Multiple sources at Treasury said that the loan is yet to be disbursed to the government of Kenya.
They added that the new loan will attract an interested rate of Sh0.1 per cent per anum and a service charge of Sh0.1 per cent per annum.
The funds will fund BRT corridors from the Jomo Kenyatta International Airport to Likoni, James Gichuru-Rironi and Bomas to Ruiru roads. Other motorways are Ngong Road, Juja, Mama Lucy, T-Mall and Balozi to Imara roads.

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