Kenya has secured a $20 million loan from the Organisation of the Petroleum Exporting Countries (OPEC) to increase regional connectivity and enhance trade.
The OPEC Fund for International Development (the OPEC Fund) did not disclose repayment details.
The loan is expected to finance the upgrading of the 90-kilometre Samatar - Wajir Road, a part of the North and North-Eastern Development Initiative Programme.
It is expected to better connect Kenya’s northern region to the rest of the country, improving an important 739 kilometres corridor linking Isiolo in the North with Mandera in the northeast (at the border with Ethiopia)
''The project will improve the socio-economic welfare of about 1.6 million people,'' OPEC Fund said.
The OPEC Fund was established by the member countries of OPEC in 1976 with a distinct mandate: to drive development, strengthen communities and empower people.
The lender said that the investment aligns with the Sustainable Development Goals (SDGs) and with SDG 9 on industry, innovation and infrastructure in particular.
The OPEC Fund is co-financing the project with the Arab Bank for Economic Development in Africa, the Kuwait Fund for Arab Economic Development, the Saudi Fund for Development and the government of Kenya.
The OPEC Fund and Kenya have been development partners for nearly 45 years.
The organisation has provided public sector financing totalling close to $195 million (including the present loan) to help support the country’s agriculture, banking and financial services, communication and education.
