The Kenyan government has reportedly borrowed 6.4 Billion Kenyan Shillings from the Korean government. The money borrowed, will be channeled towards the financing of the Bus Rapid Transport (BRT).
According to reports, the Kenyan government approached the Korean Export and Import Bank (which is also commonly known as the Korea Eximbank (KEXIM)), in pursuit of a long term loan that taxpayers will pay back, until the 29th of January 2061.
The 6.365 Billion Kenyan Shillings loan was signed by the Kenyan Treasury at an exchange rate of 107.85 Kenyan Shillings.
Although said loan was signed on the 29th of January 2021, it has not yet been provided to the Kenyan government.
The Treasury while making disclosures to the Parliament made it known that, “The loan will…attract interested rate of Sh0.1 percent per anum and a service charge of Sh0.1 percent per annum on undisbursed loan amount.”
It is expected that the Bus Rapid Transport (BRT) system will improve the public transport network of a city, compared to the more common buses.
The Kenyan government is looking to set up six (6) Bus Rapid Transport (BRT) corridors in Nairobi.
The areas of major priority include the James Gichuru to Rironi road, the Bomas to Ruiru road, and the Jomo Kenyatta International Airport to Likoni road. Other motorways include Juja, Ngong Road, Mama Lucy, the Balozi to Imara road, and T-Mall.
It is projected that the corridors will be able to handle up to 950 high capacity buses. This will significantly reduce the cost of travel as well as the time used, by as much as 70 percent.
Kenya is also looking to offer a 12 year concession to a private company for the running of the Bus Rapid Transport (BRT) which will be on Mombasa road and Thika road to further reduce the traffic in nation’s capital of Nairobi.
Francis Gitau who is the Acting Director-General of the Nairobi Metropolitan Area Transport Authority made it known that the private company would be in charge of 300 Bus Rapid Transport (BRT) buses.
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