Kenya: Japan lends $270 mn loan to help expand Mombasa port

mombasa-2yc8m9n1lbtn70npovohzeThe government of Kenya has signed a $270 million loan deal with Japan last week to help expand the capacity at Mombasa port, a busy facility that is the main trade gateway to east Africa.

The National Treasury Cabinet Secretary Henry Rotich has said that the loan will fund the development of the port expansion project which includes the construction of the new container terminal.

The officials said also that the loan will support the purchase of cargo handling equipment, help to finance a brand new container terminal and aid construction of another terminal already built.

“The ongoing funding is a clear testimony of Japanese government’s support of our infrastructure sector, whose completion will provide handling equipment to facilitate trade and economic development in Kenya and in the entire region,” said Rotich when he signed the deal in Mombasa to Reuters.

Japanese Ambassador to Kenya Tatsushi Terada said the project will enhance container handling capacity at the port, noting that his government is committed to help Kenya implement the port development projects.

“Mombasa port being gateway city of the rapidly growing East African economy, this project upon completion will benefit not only Kenya but the entire region. This will be the biggest single Overseas Development Assistance (ODA) project in Japan’s history of economic cooperation with Kenya,” said Terada.

Transport and Infrastructure Cabinet Secretary Michael Kamau said Phase II of the second container terminal involves the construction of berth number 22 with length of 250 meters and 15 meters depth. He said once the terminal is completed it will provide an additional capacity of 400,000 Total Equivalent Units (TEUs).

Mombasa port is the second largest in Africa in terms of tonnage and containers handled per year with an average of 1, 700 ships docking at the facility annually.

About Khalid Al Mouahidi 3123 Articles
Khalid Al Mouahidi : A binational from the US and Morocco, Khalid El Mouahidi has worked for several american companies in the Maghreb Region and is currently based in Casablanca, where he is doing consulting jobs for major international companies . Khalid writes analytical pieces about economic ties between the Maghreb and the Mena Region, where he has an extensive network