The World Bank announced on Thursday, May 3 the agreement for Kenya of a $ 1 billion concessional loan for infrastructure projects in the areas of energy, transport and water in the regions most poor people in the north and north-east.
“These infrastructure investments are laying the groundwork for additional operations that will enable sustainable livelihoods with targeted support to farmers and ranchers in the region and increased support to the most vulnerable households through regular cash transfers,” said World Bank in a statement.
Funding will go to six projects, including a $ 150 million off-grid energy access initiative that the World Bank says will provide 1.2 million people with electricity and contribute 96 megawatts to the national grid. An additional $ 500 million will go to a 740 km stretch of the Isiolo-Wajir-Mandera road corridor in the northeast and improve Internet access.
The World Bank’s concessional loans generally have zero or very low interest rates and have repayment periods of 25 to 40 years, with a grace period of five or ten years.
Kenya is growing by 5.8 percent this year, following the electoral turmoil and drought that reduced last year’s expansion to its lowest level in more than five years.
