The Government of Kenya has borrowed Ksh. 6.4 billion from the Korean government to finance the Bus Rapid Transport (BRT) in Nairobi. The loan from the Korean Export and Import Bank will be serviced by taxpayers until 29th January, 2061.
The loan will attract an interest rate of Ksh. 0.1% per annum with an additional service charge of Ksh. 0.1% per annum. The Treasury signed the Ksh. 6,365,150,000 loans at an exchange rate of Ksh. 107.85.
According to the Government of Kenya, the funds will be used to launch six BRT corridors in Nairobi, seeking to improve the city’s public transport network relative to conventional buses.
Priority corridors for these funds are the Jomo Kenyatta International Airport (JKIA) to Likoni, James Gichuru-Rironi and Bomas to Ruiru roads, Ngong Road, Juja, Mama Lucy, T-Mall and Balozi to Imara roads. The corridors are expected to hold up to 950 high-capacity buses reducing travel time and cost by up to 70%.