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Completed Mixed AidData Chinese Aid

China Eximbank provides $104.4 million preferential buyer's credit for Nairobi Northern and Eastern Bypass Project

¥104.4M RMB

Funder Export-Import Bank of China (China Eximbank)
Recipient Organization Government of Kenya
Country Kenya
Start Date Dec 15, 2008
End Date Jul 23, 2028
Duration 7,160 days
Number of Grantees 1
Roles Recipient
Data Source AidData Chinese Aid
Grant ID 1112
Grant Description

China Eximbank provides $104.4 million preferential buyer's credit for Nairobi Northern and Eastern Bypass Project On December 15, 2008, China Eximbank and the Government of Kenya signed a $108 million preferential buyer's credit (PBC) agreement for the Northern and Eastern Bypass Project. The face value of the loan was subsequently revised to $104,400,000.

📋 Loan / Grant Terms
💰 Loan Amountwere as follows: a 2% interest rate
📅 Maturity20 years
⏳ Grace Period7 years
💹 Interest Rate2%

The loan was scheduled for semi-annual repayment in equal installments between January 30, 2015, and January 21, 2029.

The borrower was expected to use the proceed of the loan to finance 85% of the cost of a RMB 740 million commercial (EPC) contract with China Road and Bridge Corporation (CRBC).

The borrower made principal repayments worth $3,600,000 between July 1, 2020 and June 30, 2021 and $7,200,000 between July 1, 2021 and June 30, 2022.

The loan’s amount outstanding was $64,800,000 as of June 30, 2020, $57,600,000 as of June 30, 2021, and $50,400,000 as of June 30, 2022. The project sought to build a 52 km road in Nairobi. The project supported a 21 km northern bypass segment and a 31 km eastern bypass segment.

The northern bypass road starts in a neighborhood called Ruaka, approximately 16 kilometres (10 mi), north-west of the central business district of Nairobi, the capital and largest city of Kenya. From there, the road travels in a general easterly direction through Runda.

It briefly crosses into Kiambu County, passes underneath Kiambu Road, re-enters Nairobi County and continues to a neighborhood called Marurui.

At Marurui, the road takes a north-easterly direction, crosses Kamiti Road, then passes through Kahawa and re-enters Kiambu Couty, to end at the Nairobi Eastern Bypass Highway in Ruiru.

The eastern bypass road starts at the junction of the Nairobi–Mombasa Road and Airport North Road, in Embakasi, immediately west of Nairobi International Airport, approximately 12 kilometres (7 mi) south-east of the city centre.The road then loops through the south-eastern suburbs of Nairobi, skirting the northern edges of Jomo Kenyatta International Airport, through Ruai.

The road then crosses from Nairobi County, into Kiambu County and then turns westwards, passes underneath the Thika Highway and ends at the Ruiru Kamiti Road, at a place called Ruiru Road Junction. CRBC was the contractor responsible for implementation. Construction on the Bypass Project began on April 18, 2009.

The project was completed and delivered to Kenya Urban Roads Authority on March 30, 2012. The project aimed to build a 53 km road in Nairobi. The project consisted of a 21 km northern bypass segment and a 32 km eastern bypass segment.

📋 Staff Comments
  1. The northern bypass road starts in the neighborhood of Ruaka, approximately 16 kilometres (10 mi), north-west of the central business district of Nairobi, the capital and largest city of Kenya. From there, the road travels in a general easterly direction through Runda. It briefly crosses into Kiambu County, passes underneath Kiambu Road, re-enters Nairobi County and continues to a neighborhood called Marurui. At Marurui, the road takes a north-easterly direction, crosses Kamiti Road, then passes through Kahawa and re-enters Kiambu Couty, to end at the Nairobi Eastern Bypass Highway in Ruiru. The eastern bypass road starts at the junction of the Nairobi–Mombasa Road and Airport North Road, in Embakasi, immediately west of Nairobi International Airport, approximately 12 kilometres (7 mi) south-east of the city centre. The road then loops through the south-eastern suburbs of Nairobi, skirting the northern edges of Jomo Kenyatta International Airport, through Ruai. The road then crosses from Nairobi County, into Kiambu County and then turns westwards, passes underneath the Thika Highway, and ends at the Ruiru Kamiti Road, at a place called Ruiru Road Junction.
  2. The Government of Kenya loan identification number is 2008006_1.
  3. The amounts outstanding and repayments data are drawn from the Kenyan Treasury’s External Public Debt Register. See https://www.dropbox.com/s/549ixt2gj1jbjvi/External-Public-Debt-Register-as-at-End-June-2022.pdf?dl=0 and https://www.dropbox.com/s/0et4jg1qfg1bo7r/External-Public-Debt-Register-as-at-End-June-2021.pdf?dl=0 and https://www.dropbox.com/s/233j706743q7f1g/External-Public-Debt-Register-as-at-End-June-2020.pdf?dl=0 and https://www.dropbox.com/s/qkoybr9ja0ohemy/External-Public-Debt-Register-as-at-End-June-2009.pdf?dl=0 and https://www.dropbox.com/s/thy3s6ggjcjd97z/External-Public-Debt-Register-as-at-End-June-2012.pdf?dl=0 and https://www.dropbox.com/s/fzbfq01vas6m0i9/External-Public-Debt-Register-as-at-End-June-2019.pdf?dl=0 and https://www.dropbox.com/s/ennrl6d4zd2nizs/External-Public-Debt-Register-as-at-End-June-2018.pdf?dl=0 and https://www.dropbox.com/s/8ibazrj1a8oho2d/External-Public-Debt-Register-as-at-End-June-2017.pdf?dl=0 and https://www.dropbox.com/s/wdbjl0wq49i09x1/External-Public-Debt-Register-as-at-End-June-2015.pdf?dl=0
📚 Sources & References
  • http://www.kura.go.ke/index.php/component/content/article/1-about-us/1-projects-updates.html, http://www.manuelasweb.com/?p=337, http://www.statehousekenya.go.ke/news/oct09/2009061001.htm
  • SPECIAL FEATURE: TOP INVESTMENT AREAS IN EAST AFRICA AND THE PLAYERS EXPLOITING THEM (3), http://www.standardmedia.co.ke/?id=2000047530&cid=14&j=&m=&d=&articleID=2000047530
  • CHINA BUILDING SOLID ROAD TO KENYA RELATIONS
  • China’s development loans and the threat of debt crisis in Kenya
  • 使命与责任诠释大爱风采——中国路桥肯尼亚项目与企业社会责任建设纪实
  • Kenyan President Kibaki Attends the Opening Ceremony of China's Aid to Construct Nairobi Ring Road
  • Nairobi Northern Bypass Highway
  • Nairobi Eastern Bypass Highway
  • Two Projects of CRBC Wins 2013 National Construction Project Outstanding Design Achievement Award, http://www.kura.go.ke/index.php/projects/completed-projects.html, http://www.kura.go.ke/index.php/component/content/article/1-about-us/1-projects-updates.html, http://allafrica.com/stories/201208030366.html
  • Kenya: Southern Bypass Work Set to Start This Week
  • External Public Debt Register 2012
  • The National Treasury Public Debt Management Office Summary Statement 2021/2022
  • SUMMARY STATEMENT OF PUBLIC DEBT FOR 2020/2021FY IN FOREIGN CURRENCY
  • NAIROBI-THIKA HIGHWAY IMPROVEMENT PROJECT PROJECT COMPLETION REPORT
  • Environmental Risk Exposure in the Kenyan Banking Sector 2022 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees

Government of Kenya

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