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- Dec 6, 2013
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President Uhuru Kenyatta (left) and Japan's Prime Minister Shinzo Abe during a joint press conference at the close of the 6th Tokyo International Conference on African Development (Ticad) on August 28, 2016. Japan and Kenya have signed a Sh27.3bn deal to build Dongo Kundu hub.
Kenya has secured Sh27.3 billion from Japan to construct an industrial and commercial hub in Dongo Kundu, Mombasa.
The first phase of the Special Economic Zone (SEZ), which is expected to alter the coastal town in terms of infrastructure and business, is scheduled to be ready by 2019.
An agreement signed by the governments of Kenya and Japan on the sidelines of the Tokyo International Convention on Africa Development (Ticad) shows that of the Sh27.3 billion ($269.9 million), Sh21.36 billion is a long term soft loan while Sh5.969 billion is a grant.
“The Government of Japan will finance the basic infrastructure of phase one through a concessional loan of US$210.8 million and grant assistance of US$58.9 million,” the MoU says.
The industrial and commercial hub, which will sit on 1,326 hectares, is part of the master plan for the development of the Mombasa Special Economic Zone that was conceived and prepared with assistance from Japan in 2015.
The deal involves the development of infrastructure, including Berth 1 at the Port of Mombasa, access roads, transmission line, water supply pipeline from the mainland and a sub-station, drainage, power supply and a free trade zone in the zone.
Source: Daily Nation