John Mbadi, the National Treasury and Economic Planning Cabinet Secretary, has secured a deal in China during President William Ruto’s visit for the Forum on China–Africa Cooperation (FOCAC).
In a statement from the National Treasury, CS Mbadi announced that he finalized the agreement with Tan Jiong, President of the China Development Bank.
The credit facility will be used to develop 15 rural roads in Kenya. CS Mbadi highlighted that this infrastructure project would generate job opportunities and enhance access to essential services.
“CS John Mbadi today signed a credit facility with Mr. Tan Jiong, President of China Development Bank, in Beijing to construct 15 rural roads across Kenya. These roads will boost economic activities, create jobs, and improve access to essential services in the rural areas.
“This project is aimed at enhancing rural connectivity, enhancing economic growth, and uplifting livelihoods across the country,” a statement from the National Treasury read in part.
“Today’s signing is important because the Govt prioritizes rural roads development. This project will unlock opportunities for trade, improve market access, and enhance the quality of life for millions in underserved areas, marking a key step toward achieving Kenya’s Vision 2030 goals,” it added.
The National Treasury did not disclose the amount of the credit facility secured.
Following the deal, National Treasury Principal Secretary Chris Kiptoo signed a memorandum of understanding in Beijing to strengthen cooperation through the Public Private Partnership model. This supports Kenya’s policy of increasing private sector involvement in bilateral development projects. Kiptoo finalized the agreement in the presence of Wang Shaodan, Chairman of the China Africa Development Fund.
“The MoU signed today is expected to encourage more Chinese companies to invest in Kenya’s infrastructure projects, utilizing the PPP financing framework. This partnership will play a critical role in supporting long-term investments in key sectors, enhancing Kenya’s development agenda,” the National Treasury explained.
During the event, the China Development Bank agreed to expand its presence by opening a new office of the China Africa Development Fund in Nairobi. According to the National Treasury, this expansion will play a crucial role in enhancing economic ties between Kenya and China.
3/4 During the event, China Development Bank agreed to expand the existing China Africa Development Fund office by opening a new office in Nairobi. This expansion will be a key part of broader efforts to strengthen economic ties between Kenya and China.
— The National Treasury & Economic Planning (@KeTreasury) September 6, 2024
