The government has turned to South Korea to fund Nairobi’s proposed Bus Rapid Transport (BRT) network.
Treasury signed Sh6,365,150,000 loans with the the Korean government earlier this year, but that is yet to be disbursed. The exchange rate was agreed at Sh107.85.
“The loan will attract interested rate of Sh0.1 percent per annum and a service charge of Sh0.1 percent per annum on undisbursed loan amount,” Treasury said in disclosures to Parliament.
It is a long-term loan, with repayment expected to be complete 40 years from now, in 2061.
The money will go into financing 6 BRT corridors in the city, with the first being the one on Thika road, from Ruiru and eventually terminating at Bomas.
Others will run along Mombasa road from Jomo Kenyatta International Airport to James Gichuru, then Rironi, and also along the Outering road.
Eventually, the government intends to build other BRT corridors on Ngong Road and Jogoo Road.
Close to 1000 buses will be operated along these corridors.