Kenya has moved to Korea to borrow ksh6.4 billion it plans to repay for the next 40 years.
The country plans to use the long-term loan for the construction of Bus Rapid Transit (BRT).
Kenyan government signed the loan on January 29,202`1 and will be serviced by the taxpayers till January 29, 2061. The loan will attract an interest rate of 0.1 percent per annum and a service charge of ksh0.1 percent.
The Treasury signed the ksh6,365,150,000 loan from the Korean Export and Import Bank at an exchange rate of ksh107.86.
“The loan will attract an interested rate of ksh0.1 percent per anum and a service charge of ksh0.1 percent per annum on undisbursed loan amount,” Ukur said as reported by a local daily.
Kenya is hoping to use this loan to improve Nairobi's public transport sector by constructing six BRT corridors in the city.
The corridors will be situated at the Jomo Kenyatta International Airport, Ngong Road, Mama Lucy, Juja, T-Mall, James Gichuru-Rironi, and Boma - Ruiru roads.
The country is hoping that these corridors will accommodate up to 950 high-capacity buses to reduce travel time and transport costs.