Press Release

Kenya to pursue road construction with US$14.57 million OPEC Fund loan

43/2005 April 21, 2005, Vienna, Austria

The OPEC Fund for International Development today signed a US$14.57 million loan agreement with the Republic of Kenya in aid of a road rehabilitation project in the southern Rift Valley province. The project will back a government initiative to provide Kenya’s more isolated regions with a reliable road network, thereby reducing transportation costs, promoting economic activity, increasing employment opportunities and facilitating the integration of domestic and regional markets.

Kenya has an extensive road network, but it is mostly concentrated along a transport corridor extending from Mombasa through Nairobi to Uganda. Government strategy is focusing on developing and maintaining efficient road infrastructure in rural areas, where agricultural potential and economic expansion are currently restricted due to poor road conditions.

The route earmarked for rehabilitation is the 105-km Emali-Oloitokitok road. Following the existing gravel road, and starting from the town of Emali, 95km to the south-west of Nairobi, the new road will continue south to Oloitokitok near the border with Tanzania. It will be paved to double bituminous standard with a 6.5-meter wide carriageway and a 1.5-meter wide shoulder on each side.

As well as greatly improving communication links between the project area and the rest of the country, the new road will also contribute to the development of tourism and provide another link between Kenya and Tanzania. In addition, it will offer better job prospects and improved access to social services for the area’s 140,000 population.

The OPEC Fund has previously approved 15 loans for development operations in Kenya, including three lines of credit to the Kenya Commercial Bank Group, one balance of payment support loan, one program loan and 10 project loans in the transportation, agriculture, education, health and water and sewerage sectors. Kenya has also benefited from a number of grants, and is a participating country under the WHO/OPEC Fund Initiative against HIV/AIDS in Africa.

Today’s agreement was signed in Vienna by Mr. D.K. Kibera, Director, External Resources Department, Ministry of Finance of the Republic of Kenya, and by H.E. Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.

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