Kenya secures loan from European Investment Bank

By Caroline Njenga

Kenya has secured a 20 billion shillings loan from the European Investment Bank to finance electricity connection for more Kenyans under the last mile connectivity project.

The cash will support Kenya Power connect 300,000 new customers with electricity. The loan accruing less than 2 percent in interest will be repaid in 20 years.

Hundreds of thousands of households and businesses in the country will be connected to the national grid following the deal between the government and development partners.

European Investment Bank has availed a concessional loan of 6.6 billion shillings; the French government will contribute 9.9 billion shillings while the EU will give Kenya a grant of 3.3 billion shillings.

The National Treasury has also signed letters of intent with European Investment Bank that allows financing the Mombasa and Mariakania road and the Olkaria Geothermal project unit 6 to begin.

Talks are underway to rehabilitate and upgrade berths at the Port of Mombasa to accommodate large ships.

Rotich is banking on introduction of a 6 percent withholding tax as well as other tax administrative measures and reforms to power the Kenya Revenue Authority collect the targeted 1.7 trillion shillings in the next financial year.