NAIROBI, Kenya- Kenya just took a major step forward in improving rural infrastructure, thanks to a new agreement signed with the China Development Bank.
National Treasury Cabinet Secretary (CS) John Mbadi secured a credit facility to fund the construction of 15 rural roads across the country, marking a boost in the country’s ongoing efforts to modernize its road network.
The deal was signed during the Forum on China-Africa Cooperation (FOCAC) held in China, with President William Ruto also in attendance.
The agreement, witnessed by Roads and Transport CS Davis Chirchir and Principal Secretaries Chris Kiptoo and Joseph Mbugua, aims to breathe new life into underserved rural areas.
“This project is crucial because it aligns with the government’s priority of rural road development,” the National Treasury stated.
These roads will not only improve market access for remote communities but also create jobs and foster economic activities across various regions.
With rural connectivity often overlooked, this deal is seen as a key milestone in achieving Kenya’s Vision 2030 goals, which focus on improving infrastructure as a driver of economic growth.
According to the Treasury, the project will open up trade routes, making it easier for farmers and small businesses to reach broader markets, thus improving the quality of life for millions.
This new agreement is part of broader efforts to deepen Kenya’s ties with China. During the FOCAC event, CS Mbadi signed the credit facility with Tan Jiong, President of the China Development Bank.
The deal underscores the growing cooperation between the two nations, particularly in infrastructure development, which has become a cornerstone of their bilateral relationship.
In addition to this road development project, Kenya also signed a Memorandum of Understanding (MoU) with the China Africa Development Fund (CAD Fund), aiming to boost Public-Private Partnerships (PPP).
Principal Secretary Chris Kiptoo inked the deal with Wang Shaodan, Chairman of the CAD Fund, reinforcing the government’s commitment to enabling private sector involvement in bilateral cooperation projects.
As part of this deepening collaboration, the China Development Bank plans to expand its footprint in Kenya by opening a new office in Nairobi, further strengthening economic ties.
“The expanded China Africa Development Fund office will be key in broadening our economic cooperation with China,” the statement read.
The new office is expected to facilitate smoother operations between the two nations, particularly in development finance and investment.
This expansion represents a crucial step in cementing Kenya’s partnership with China, while also ensuring that both countries continue to benefit from their long-standing collaboration in infrastructure and economic development.
