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The Republic of Kenya and BADEA sign a US $ 5
Million Loan Agreement |
 In
a ceremony held on Thursday 2nd December 2004, at BADEA’s Headquarters in
Khartoum, a loan agreement was signed between the Republic of Kenya and the Arab
Bank for Economic Development in Africa (BADEA). By virtue of this agreement
BADEA extends to the Republic of Kenya a loan of US $ 5 million to help finance
Rehabilitation and Development of Irrigated Land in Holla region project (Phase
I).
The signing ceremony was attended by Mr. Njeru Kirira, Financial Secretary,
Ministry of Finance, H.E. Mr. Ahmed Abdallah Al-Akeil, Chairman of BADEA’s Board
of Directors and H.E. Mr. Medhat S. Lotfy, the Director General of BADEA.
The loan will be repaid in 27 years including a grace period of 5 years and at
an annual interest rate of 1%.
The project aims at rehabilitation of land estimated at 900 hectares of
agricultural land, through permanent irrigation system to increase agricultural
production. The project will increase the farmer’s income, create employments
opportunities and help food self-sufficiency in the project area and
neighbouring villages and will improve the living conditions of the population
socially and economically. The project also will reduce poverty alleviation.
Including this new loan, the total commitments of BADEA to Republic of Kenya
will amount to US $ 54.91 million. |
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