Kenya and the Saudi Monetary Fund have signed a $27 million (Sh2.36 billion) soft loan agreement for the construction of Nunow-Mudogashe road in Garissa county. Treasury Cabinet Secretary Henry Rotich signed on behalf of the government while Eng Yousef al-Bassam signed on behalf of the Saudi Monetary Fund in Nairobi yesterday.
The subsidised Saudi loan is set to be repaid in 30 years. Similar arrangements are expected to be concluded with the Kuwait and Abu Dhabi monetary funds. The road will be constructed at a cost of about $130 million (Sh11.38 billion). Construction is expected to begin early next year. "The Nunow-Mudogashe road will open up an important corridor of our county. It will contribute to the economic and social development of the entire northern region of Kenya," said Garissa Governor Nathif Jama.