Kenya and TradeMark East Africa (TMEA) have inked a KSh1.31 billion grant agreement to support infrastructure projects in Mombasa, Busia, and Malaba.
National Treasury said the money will pay for construction of Busia Jumuiya market, the road linking Busia One-Stop Border Post (OSBP) to Busia Town, and construction of Magongo Road in Mombasa.
TradeMark East Africa (TMEA) is an aid-for-trade organisation funded by development agencies of Belgium, Canada, Denmark, EU, Finland, Ireland, Netherlands, Norway, the UK, and the USA.
Part of the funds will also be used to complete the pending works at Malaba OSBP.
The four financing agreements were signed by Treasury Cabinet Secretary, Ukur Yatani and TMEA chief executive, Frank Matsaert in Nairobi Tuesday.
“The four grant agreements (approximately KSh1.31 billion) we have signed today will facilitate trade and unlock the economic growth of Kenya, Uganda, Rwanda, Burundi, and to a wider extent Democratic Republic of Congo given that this investment is in critical infrastructure,” Yatani said.
“Since 2010, we have invested overm$107 million (KSh11.6 billion) at the port of Mombasa and $16.5 million at four One-Stop Border Posts of Busia, Malaba, Taita/ Taveta and Moyale. At the same time, we are keen that citizens are able to trade to increase their incomes, that livelihoods are protected, and that Kenyan SME’s access to international markets,” he added.
The envisioned Busia Jumuiya Cross Border Market will occupy 40-acres of land with its full completion costing Ksh 2Billion for 3 phases being a retail section, a wholesale section, and a business hub.
Among the benefits of the project is reducing post-harvest losses that often occur due to lack of storage facilities for fresh fruits, vegetables, and fish. The market will also enhance revenue collection for the Busia County Government by providing a structured mechanism for SMEs involved in cross border trade to conduct businesses legally and safely.
Phase 1 (retail section) will cost KSh559.3 million with TMEA contributing KSh485.3 million with funding from the Foreign, Commonwealth and Development Office (FCDO) and Danida, and the government contributing an additional KSh74.3 million.
The 10,000 capacity Busia Jumuiya Market was developed in response to the Presidential directive of 2019 to establish Cross Border markets in Busia, Isebania, and Taita Taveta.
In addition, TMEA, through funding from FCDO, has also committed $3.7 million (KSh372 million) to finance the dualling of the road approaching the Busia One-Stop Border Post from Busia town. The road is expected to reduce frequent traffic snarl-ups. So far, Magongo road has received KSh1.1 billion from TMEA and KSh3.7 billion from the government while the completion of the Malaba OSBP has received KSh403 million.