Kenya Signs New Ksh24 Billion Loan Deal with China EximBank for Nairobi Traffic Upgrade
Kenya has entered a new loan agreement worth USD 185 million (approximately Ksh24 billion at current exchange rates) with the Export-Import Bank of China (China EximBank) to finance a major upgrade of Nairobi’s traffic management system through the Intelligent Transport System (ITS) Project.
The deal was formally signed on Wednesday, November 26, by Treasury Cabinet Secretary John Mbadi and Zhu Jia, the Deputy General Manager of the Sovereign Business Department at China EximBank.
The signing ceremony was witnessed by China EximBank Chairman Chen Huaiyu and Treasury Principal Secretary Chris Kiptoo.
According to the National Treasury, the ITS Project is a central part of Kenya’s long-term plan to modernize and streamline the country’s transport network.
The system is intended to upgrade mobility across Nairobi’s busiest roads by introducing advanced digital tools that support smoother and safer traffic management.
The government plans to equip 25 major roundabouts in Nairobi with modern digital traffic controls, replacing manual monitoring with automated systems.
The ITS package will include smart traffic lights, high-definition cameras, sensors, and real-time monitoring tools designed to observe traffic patterns and automatically adjust signal timings.
This is expected to reduce the need for traffic police in the city and make daily movement more predictable and efficient.
CS Mbadi expressed confidence that the new system will significantly improve travel conditions in Nairobi once fully installed.
He noted that the project will help cut down congestion, promote safer road use, shorten travel hours for motorists and commuters, and support the broader goal of building a digitally connected transport framework.
Mbadi added that the improved flow of traffic will contribute to economic growth through saved time, reduced fuel wastage, and higher productivity for millions of Kenyans who rely on Nairobi’s roads every day.
He also praised China EximBank for its continued cooperation with Kenya, acknowledging the bank’s role in funding major infrastructure developments that have supported the country’s economic progress over the years.
China EximBank Chairman Chen Huaiyu assured Kenya of the bank’s long-term commitment, stating that the new project would strengthen the strong diplomatic relations between the two countries and contribute to Kenya’s overall development agenda.
Recent reports from the Treasury showed that Kenya was expected to contribute around Ksh6 billion toward the ITS Project, with the balance financed through external sources such as China EximBank.
However, despite earlier plans to complete the project by January 2025, implementation has been delayed.
The Treasury cited pending design work and an incomplete procurement process for the system’s design and rollout as major reasons for the slow progress.
Overall, the new loan marks another significant step in Kenya’s efforts to modernize Nairobi’s transport network and introduce smarter, technology-driven systems to support a growing urban population.
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