Loan agreement set to boost Kenya's electricity infrastructure
12 June 2012
The Kenyan and French governments have announced that they have reached an accord over a loan deal that will lead to significant upgrades in the east African state's electricity infrastructure, Capital FM reports.
Speaking to reporters in the Kenyan capital of Nairobi, Robinson Githae, the finance minister, explained that the loan will help the government to reach its long-term ambition of distributing electricity to urban and rural areas.
The loan, worth sh8.3 (£62.4 million), should help to reduce the frequency of electricity blackouts, which have blighted the Kenyan economy.
"The financing agreement by the French government through French Development Agency for 78.5 million euros will support the financing of the 146.7 million euro Nairobi Ring Transmission Project in order to stabilize electricity supply in the country," Mr Githae explained.
"The project is also set to be completed by July 2014 as part of plans to enhance electricity supply to Nairobi which is home to roughly ten per cent of total population and 50 per cent of total demand."