CS John Mbadi has signed a credit facility from China for the construction of 15 rural roads across the country.
The National Treasury and Economic Planning Cabinet Secretary John Mbadi signed the loan facility with the China Development Bank’s President Tan Jiong in Beijing.
CS Mbadi was accompanied by other senior officials including CS Davis Chirchir and PS Joseph Mbugua.
According to an official statement by the Ministry of the National Treasury and Economic Planning, the construction of the earmarked roads is aimed at enhancing rural connectivity, improving economic growth, and enhancing livelihoods across Kenya.
The road projects are expected to create jobs, boost economic activities, and enhance accessibility to essential services in rural areas.
“Today’s signing is important because the Govt prioritizes rural roads development. This project will unlock opportunities for trade, improve market access, and enhance the quality of life for millions in underserved areas, marking a key step toward achieving Kenya’s Vision 2030 goals,” the statement read.
The signing of the credit facility comes amidst the concerns of the rising Kenya’s public debt. The country’s public debt has increased sharply from Kshs 2.1 trillion in 2013 to 11.2 trillion in January 2024.
However, the cash-constrained government is still expected to deliver services to the public. The rejection of the unpopular finance bill 2024 has forced the Ruto administration to take more debt to keep the government running.
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President Ruto’s visit to Beijing for the China-Africa summit presented an opportunity for him to seek cheaper concessional financing for key infrastructural projects in the country.
The Kenyan president held talks with the China Communications Construction Company for potential financing and construction of major projects such as the Rironi-Mau Summit-Malaba dual carriageway and Galana-Kulalu Irrigation Projects.
