World Bank approves Sh2.8 billion to stimulate activity at Kenya's Coast
Thursday, 29 July 2010
The government’s campaign to increase revenue sources in Coast Province has received a boost with the World Bank approving a new credit line to support the development of the region.
The bank on Tuesday approved a Sh2.8 billion ($35 million) loan to boost the management of the country’s coastal tourism resources and fight poverty.
The money will be used to fund the Kenya Coastal Development Project which was conceived to promote management of the country’s coastal and marine resources.
An additional grant of Sh405 million ($5 million) has also been extended to the project by Global Environment Facility (GEF) for strengthening conservation of marine biodiversity.
Beyond its primary objective, the project also seeks to promote dialogue to establish a village fund to build micro-projects.
"These objectives will be complemented by frameworks including spatial planning and land mapping, integrated coastal management and compliance with regulations and safeguards," said Mr William Leeds Lane, the project’s team leader.
This investment is the first in a series planned by the government, Bank and other development partners to improve the economic viability of Kenya’s Coast and increase opportunities for an estimated 2.5 million people there.
Under the government’s Vision 2030, tourism is one of the engines of growth with the potential to create more jobs, reduce poverty, and generate more wealth.
However, there has been concern over the poor management of the region’s resources, isolating masses from economic wheel.
"Kenyans living in Coast Province are among the poorest in the country, despite the region’s considerable potential for economic growth from tourism, fisheries and other investments," said Mr Johannes Zutt, the bank’s Country Director for Kenya.
"This project will help to increase economic opportunities for coastal communities by promoting environmentally-sustainable tourism and fisheries, equitable sharing of tourism and fisheries revenues and investment in rural micro-, small- and medium-sized enterprises."
Mr Zutt said the coastal project that has been aligned to the government’s Vision 2030, will support reforms in fisheries management and promote research in near-shore fish stocks.
The project seeks to promote the regeneration of natural resources and biodiversity of the coastal and marine environment in line with the Bank’s Partnership Strategy it endorsed in April this year.
The latest credit line has been extended on the bank’s concessionary lending, which include a 10-year grace period and a 40-year maturity period.
It comes hot on the heels of other plans that the lender has extended to Kenya in recent weeks.
Early this month, Finance minister Uhuru Kenyatta announced plans to borrow $453 million from the World Bank to support energy supply in order to reduce over-reliance on hydropower.
Out of the total amount, the bank has this month approved $330 million to be disbursed to the Kenya Electricity Expansion Project which seeks to expand the power grid and increase geothermal capacity by more than 40 per cent.
In May, the bank’s Board of Executive Directors approved a Sh4.9 billion ($60 million) credit for Kenya to support unemployed youth under the Kenya Youth Empowerment Project.
