Kenyan President Mwai Kibaki on Monday held discussions with visiting Governor of China Development Bank Jiang Chaoliang in Nairobi where they discussed modalities of funding various projects in the country.
A statement issued after the meeting said the two discussed the modalities of funding various priority projects forwarded to the bank for consideration under the framework cooperation agreements signed with the government three years ago.
＂Among the projects under consideration by the bank include Civil Servants Housing project, Tana ad Ewaso Nyiro Rivers Hydro Comprehensive project, development of the port of Lamu and Mombasa – Uganda New Gauge Railway line,＂ the statement said.
During the talks, President Kibaki thanked the bank for funding development of a low and middle income housing project and Jay Ceramic Tile Factory, which were completed and commissioned last year.
He also acknowledged China's continued support for Kenya's efforts to improve on infrastructure and strengthen the foundations of the country's socio-economic development.
President Kibaki said Kenya and China enjoy cordial relations which continue to gain momentum over the years due to exchange visits at various levels.
The Chinese bank had earlier extended a 50 million U.S. dollars loan to Equity Bank, Kenya's largest bank by customer base.
The loan facility will go towards supporting small and medium enterprises in Kenya to grow to corporate companies.
Key beneficiaries of this funding are those involved in agro- processing for value addition for exports. The credit line will be spent on factory establishment and imports of machinery. ＂It is significant that Kenya and Equity bank becomes the first beneficiary of this SME fund for Africa. It reflects the growing relationship between Kenya and China,＂ CDB chief Executive Officer and Governor Jiang Chaoliang said during the signing ceremony in Nairobi.
The facility is for a six year period and will be advanced to SMEs at interest rates of between 3 and 7 percent, making it the cheapest source of funding for sector in the country.
Research & Consulting