Kenya is seeking fresh financing from the Asian Infrastructure Investment Bank (AIIB) to support major infrastructure projects, including the proposed 243-kilometre Mau Summit-Malaba Expressway.
Prime Cabinet Secretary Musalia Mudavadi said the government is also seeking funding to modernise the Jomo Kenyatta International Airport (JKIA) as Kenya looks to secure more money for major development projects.
Mudavadi made the remarks on Thursday, September 10, after meeting AIIB President Zou Jiayi, who was in Kenya for discussions on possible investments.
The meeting focused on several projects that Kenya wants the China-based lender to support.
“Kenya is diversifying its development partnerships to unlock new capital, accelerate infrastructure delivery and create opportunities that our people can see and feel,” Mudavadi said.
Mau Summit-Malaba Expressway
Among the key projects presented to AIIB was the Mau Summit-Malaba Expressway, which is expected to improve transport between western Kenya and other parts of the country.
The project involves upgrading 243 kilometres of the existing road into a four-lane, access-controlled dual carriageway.
The highway is expected to be developed under a Public-Private Partnership (PPP) arrangement and will operate as a toll road, meaning motorists will pay to use it.
The government has argued that the project will help ease congestion along the busy route while improving movement of people and goods towards western Kenya and the border with Uganda.
Other projects discussed included extending the Standard Gauge Railway (SGR) from Naivasha to Malaba, renewable energy projects, rural roads and water infrastructure.
Kenya Advances Ksh64 Billion Panda Bond
Mudavadi also revealed that Kenya had made progress on plans to issue a Ksh64 billion Panda Bond.
The bond would allow Kenya to raise money from investors in China’s capital market, with AIIB and the African Development Bank expected to support the financing process.
A Panda Bond is a debt instrument issued in China’s domestic market by a foreign government or institution and denominated in Chinese yuan.
Mudavadi said the financing discussions were part of Kenya’s wider efforts to diversify its sources of development funding.
Kenya has also offered to host the AIIB’s Sub-Saharan Africa office in Nairobi, a move the government says would strengthen the city’s role as a link between Asian investors and African markets.
“Our goal is simple: mobilise global capital to build the infrastructure Kenya needs today and create the jobs, businesses and opportunities our young people need for tomorrow,” Mudavadi said.
During her visit, Zou also inspected progress on the Rironi-Mau Summit project and expressed satisfaction with the work done so far.
