AfDB says it will approve Sh20 billion to fund infrastructure development projects. PHOTO/FILE 

Travelling on the refurbished Nairobi Thika highway — sections of which are still under construction — one gets a glimpse of the future of road transport in Kenya.
What comes to mind, probably, are the benefits of reduced time and lower fuel use. Not forgetting that farmers from as far away as Murang’a and the resource rich Rift Valley will easily deliver farm produce to Nairobi and other food-deficient towns at cheaper prices.
This is the projection of the African Development Bank (AfDB), a key financier of the continent: to invest in infrastructure development and hence support the growth of other sectors.
Mr Walter Odero, the AfDB country economist, says the current projects have been financed to the tune of Sh56 billion ($600 million), with 57 per cent of the funding targeting infrastructure facilities.
“The bank will approve the financing of projects to the tune of Sh19.8 billion  in the period 2011-2013,” he said.
Mr Tas Anvaripour, the private infrastructure finance manager at the institution, says: “We invest in key priority areas to support the overall economic growth. This is done when there is trust among the partners involved in funding.”
Last week, the bank committed $40 million (about Sh3.6 billion) to a five-year capital investment programme for the Rift Valley Railways, a consortium established to manage the parastatal railways of Kenya and Uganda.
This is part of the bank’s $165 million long-term currency-lending programme with other financial institutions. The development is projected to see a reduction in transit times, with an efficient, reliable and integrated rail system in Kenya and Uganda.
“Besides the projected benefits, the system will play a key role in regional integration,” said Ms Angela Naliaka, the principal investment officer, private infrastructure finance, at the bank.
Investment secretary Esther Koimett was optimistic about the country’s economic growth prospects following the massive investment, especially in infrastructure.
“The main hurdle to implementation of economic projects in the past came from the public, as they were critical and negative, but that has changed,” she said.
Ms Koimett said the necessary amendments and restructuring of the concession had been made and expressed hope that the project would facilitate trade.
She promised government’s support to the ongoing infrastructure projects.
Transcentury managing director Gachao Kiuna said the region’s growth is pegged on the railway line, noting that a revamped rail system will support local entrepreneurs.
“Wagons, locomotives and tyres will be supplied by local enterprises. This will have a trickle down effect and develop the cycle of local small and medium enterprises,” he said, adding that there will be greater reliability of products and services.