The State has secured Sh82.7 billion loan from Japan for the construction of a bridge and special economic zone in the Coastal city of Mombasa.
On Friday, acting Finance Cabinet Secretary Ukur Yattani confirmed the extension of the loan to the State.
He divulged that the government has also signed Sh6.08 billion funding, which will be channelled towards the development of infrastructure in Dongo Kundu.
Yattani who was speaking on behalf of the President Uhuru Kenyatta said that there are plans to construct a bridge aimed at easing congestion at the Likoni Ferry. He alluded that, the bridge will ensure there is a smooth flow of traffic at the ferry upon completion.
“The loan credit amounting to Sh46.6 billion will be applied for the construction of Mombasa Gate Bridge over the Likoni Channel inorder to improve trade and tourism. Completion of bridge over the channel will provide alternative to the Likoni Ferry, allow free movement of marine vessels that need to access Likoni Harbour as well as enhance traffic to South Coast,” he noted.
He also said that the remaining amount of the loan will be spent on the special economic zone as the government seeks to economically empower the region.
Ukur, who replaced embattled former Treasury CS Henry Rotich, said that the new project is also aimed at enhancing the handling of containers at the Port of Mombasa.
The port’s strategic location makes it the gateway for East as well as Central African region. The loan is expected to attach an interest rate of 0.1 per cent, which is set to be repaid in a period of 28 years.