The Kenya National Highways Authority has signed a Sh17 billion loan deal with a Chinese company for the construction of the 196km Lamu-Ijara-Garissa road further plunging the country into more debts.
The project is estimated to take up to 36 months.
This is the latest loan financed infrastructural development in the country.
In a statement on Monday, the authority said, “Kenha Director General Eng. Peter Mundinia and the General Manager M/S China Communication Construction Company Limited have today signed a tender award agreement for stage construction of the LAPSSET Development Project: Lamu – Ijara – Garissa (A10) Road and associated spur roads.”
According to Kenha, the 453 kilometre project will comprise the 257 kilometre
Further, 113 kilometres of the Hindi – Bodhei – Basuba – Kiunga road as well as the Ijara – Sangailu -Hulugho road will also be under works.
Meanwhile, the 114km Garsen-Witu-Lamu road project which is anticipated to open up the region for the operationalisation of Lapsset is 87 per cent complete.
Kenya National Highways Authority announced that the project will be completed in the next two months.
The Sh2.5 trillion Lamu Port South Sudan Ethiopia Transport Corridor Project that is under construction is expected to revolutionise the economy of the region.