Kenya Secures Sh40bn Chinese Loan To Finish Stalled Projects

The government has secured a Sh40 billion loan from China to complete 15 stalled road projects across more than ten counties, easing the burden of unfinished infrastructure.

Ndindi Nyoro, Chairman of the Budget and Appropriation Committee, announced that construction, will begin next month and is expected to span three years.

The Kiharu MP revealed that the agreement was a result of ongoing negotiations following President William Ruto’s state visit to China last October. “We identified around 15 projects that have not progressed beyond 20 percent. Contractors are expected to be on-site by September,” Nyoro stated.

The announcement comes amidst growing public concern over stalled projects initiated by both the Jubilee and Kenya Kwanza administrations. Lawyer David Morara recently gained attention for launching a nationwide tour to inspect these projects, including one of the 15 prioritized for completion.

President Ruto has emphasized that his administration will prioritize the completion of ongoing road projects over initiating new ones. Nyoro added that the Ksh 40 billion loan will also help reduce pending bills and the backlog of stalled projects.

The government has allocated Ksh 60 billion for road projects in the current financial year, focusing on supporting ongoing work amid financial constraints. “We are channeling our limited resources towards domestic contractors to complete these road projects,” Nyoro affirmed.

Delays in disbursements and budget cuts have forced many contractors to slow down or abandon projects, further stalling development. The National Treasury currently owes contractors over Ksh 150 billion for completed road projects nationwide.

“For the last ten years, we’ve taken on more than we can manage, leading to numerous stalled projects, especially in roads, where commitments exceed Ksh 800 billion,” Nyoro noted.

Prioritized Projects

Among the projects to be prioritized is the 64.5-kilometer Metembe-Owalo-Rioma-Marani-Ng’enyi/Ting’a-Bobaracho-Ragogo-Kegogi-Nyakoora-Rioma-Gesieka-Nyaore-Mararo road, previously flagged as a failed project.

Other key projects include:

The 75.92-kilometer Kaibot-Kapkatembo-Kipkaren Selia-Kaiboi, Maili Nne-Tuiyo, Soko-Tuiyo-Aturei road, which will be completed under the Chinese funding agreement within three years.

The Ksh 15 billion Barpelo-Tot-Marich Pass road (43 kilometers) connecting Baringo, Elgeyo Marakwet, and West Pokot counties.

The 42-kilometer Kanyaumbora-Kamomo-Kageri/Muvakari-Kanyuambora/Gachoka-Gachuriri/Kangeta-Kiumbuini Roads in Embu and Kirinyaga Counties.

The 55-kilometer Piai-Murinduko, Mumbuni-Kiumbuini-Ndindiruku-Marurumo-Kiandegwa road in Kirinyaga County.

The 56-kilometer Ndaragwa-Maili Kumi/Ndaragwa-Kanyagia-Subuku, Ndaragwa-Ngamini-Uruko, JnctB5-Karagoini Secondary School-Wakohoti Centre-Leshau Boys Secondary School, and Pesi-Kilimanjaro-Shamata Roads in Nyandarua County.

The 40.2-kilometer Ichamara-Thangathi-Rutune-Kariru-Kimathi/Mihuti-Rutune and Maseno River Sagana-Githuani-A2 Kariti Roads in Nyeri County.

The 40-kilometer upgrading of the Njoro-Beeston-Nesuit/Beeston-Lawina-Elburgon/Mauche-Sururu roads in Nakuru County.

The 61-kilometer Eronge-Kebuse-Kahawa-Memisi-Tembwo/Border-Borabu TTC-Omonyenya, Amakara-Isoge-Chebilat, Chencha-Simbauti-Tindereti-Nyansiongo Mission, Kineni Junction road in Kisii County.

The 50-kilometer Kinyany-Arror-Kapsowar Road in Elgeyo Marakwet and the 63-kilometer Timboroa-Miteitei-Kopere road in Nandi County.

The 25-kilometer Cess (Nghonji)-Rekeke-Lake Jipe Road in Taita Taveta County.

The 31.5-kilometer Tawa-Nguluni Road in Makueni County.