Written By Lisa Murimi
Treasury Cabinet Secretary John Mbadi has signed a Ksh 40 billion loan agreement with China to fund the construction of 15 rural roads across Kenya.Â
The deal, formalized in Beijing, marks another boost to China’s loan portfolio in Kenya, pushing the total beyond Ksh 900 billion.
The roads project is expected to improve economic activity, job creation, and access to essential services in rural areas, benefiting the 70% of Kenyans who live there.
President William Ruto, a strong advocate of rural infrastructure, emphasized the importance of roads in uplifting livelihoods during his visit to China earlier this week.
The signing ceremony was attended by senior Kenyan officials, including Transport CS Davis Chirchir and Treasury PS Dr Chris Kiptoo.
China Development Bank President Tan Jiong represented China.
The loan deal comes as Kenya seeks alternative financing options following public backlash over the rejected Finance Bill 2024, which aimed to raise Ksh 346 billion in revenue.
In addition to the roads project, Kenya has officially joined the Asian Infrastructure Investment Bank (AIIB), providing new opportunities for concessional funding to accelerate infrastructure and technology projects.
While critics raise concerns over Kenya’s growing debt burden, the government remains optimistic that these projects will spur economic growth and development.
