The Japanese Government has signed an agreement to loan the government of Kenya Kshs 11.8 Billion to finance the second phase of the Mombasa Port Area Road Development Project (MPARD.)
The loan is Yen dominated and now totals to Sh 36.9 billion after an earlier Sh25 billion loan which was disbursed to help expand capacity at the Mombasa port.
The new facility will finance the development of a traffic route to Mombasa South Coast towards Tanzania, alleviate congestion in this area and facilitate the logistics from the new container terminal through development of the Kipevu Link Road and Mombasa Southern Bypass (Dongo Kundu Bypass).
The loan will attract an interest rate of 1.2% per annum (Consulting services portion: 0.01%) with a repayment period of 30 years including 10 year grace period.
Japan International Cooperation Agency (JICA) Chief Representative Ms. Keiko Sano also signed a grant aid of up to Ksh 2.43 billion Agreement for dualling of Nairobi-Dagoreti Corner-Karen Road. They also signed a Ksh 280 Million for the purchase of Motorboats to enhance Surveillance of Kenya Coastline to curb contraband trade, terrorism and enhance Marine Security.
Kenya has received more than Sh 510 billion in financial and technical assistance from the Government of Japan since 1964.