To fund the Bus Rapid Transport System, the government borrowed Sh6.4 billion from the Korean government (BRT).
The government has applied to the Korean Export and Import Bank for a long-term loan that will be repaid by taxpayers until January 29, 2061.
At a cost of Sh107.85, the Treasury signed the Sh6,365,150,000 loans. The loan, which was signed on January 29, 2021, has yet to be paid to Kenya.
Treasury disclosed to Parliament that “the loan will…attract an interest rate of Sh0.1 percent per annum and a service charge of Sh0.1 percent per annum on the undisbursed loan amount.”
In comparison to traditional buses, BRT is aimed to improve a city’s public transportation network.
Kenyans have weighed in on the issue, faulting the government for uncontrolled loans.
“Kenya borrows Kes. 6.4 Billion from South Korea to finance the Bus Rapid Transport (BRT) project. Wasn’t the initial cost Kes. 2.1 Billion? The loan is to be serviced by taxpayers till January 29th, 2061. The Nairobi Expressway way cost also shot up by Kes. 7.6 Billion!” — @muthiorakariara
“Bus Rapid Transport cannot work in Kenya not because it is impossible to implement, but because it is going to be a cash cow for those in government. The next most lucrative job is going to be CEO of BRT.” — @inkorectKE
The Jubilee government has borrowed sh. 6.4 billion from the Korean government to finance the Bus Rapid Transport (BRT) which the taxpayers will service upto January 29, 2061. Kenya should be blacklisted from borrowing loans infant cancel culture should be enforced what is this? — @JaneIrunguKE
*This article was written by Gerald Gekara for Uzalendo News. Email: firstname.lastname@example.org to submit your story.