Dr. Oliver Alawuba, Group Managing Directo – UBA
The Kenyan government, through the Kenya Roads Board (KRB), has rolled out the Roads Levy Securitization Program to inject more money into the road infrastructure development and enhancing connectivity and economic growth.
This new mode of financing essentially securitizes a part of the Road Maintenance Levy Fund with an aim of raising up to USD 1.35 billion (KES 175 billion) for the most urgent road projects.
The government initiative will be taken up for road maintenance, improving the contractor cash flows, alleviating the pressure on the government budget, and steeping the project timeline and thus making it possible for more people to get connected and for the economic uplift to spread throughout Kenya.
The United Bank for Africa (UBA) Kenya, which is a part of the UBA Group, has invested USD 150 million (KES 16.38 billion) in the program’s bridge facility to become a key lender in the transaction.
This major move is a clear indication of UBA concerted effort towards the Kenyan economy and its track record of backing up by projects within the African continent.
The commitment is a harbinger of the progress towards the achievement of United Nations Sustainable Development Goal 9 (Industry, Innovation, and Infrastructure) in KenyKenya
Speaking with journalists on Wednesday afternoon at UBA Center in Nairobi, Oliver Alawuba, Group Managing Director/CEO of UBA Group stated; “Our USD 150 million commitment to the Roads Levy Securitization Program reflects our confidence in Kenya’s future and our belief in infrastructure as a foundation for trade, competitiveness, and inclusive prosperity.”
However, he added that the company has position as partner in Africa’s progress due to it’s Pan-African and global presence, that enables project of great impact to bloom in Africa.
Mary Mulili, MD/CEO of UBA Kenya remarked: “We are delighted to be part of this change-making project. UBA is not just a bank but a trustful partner to government, corporates, and society.
The investment is an enabler of better roads for farmers, reliable transport for SMEs, and efficiency for manufacturers, thus creating a virtuous circle of prosperity across Kenya, ushered in by UBA.”
The support of UBA goes far beyond the area of infrastructure to include the provision of customized financial solutions for small and medium enterprises (SMEs) as well as trade finance for the African Continental Free Trade Area (AfCFTA) to facilitate access to regional markets. “The connection between the infrastructure and the SMEs is that the one sector builds the roads and the other drives the economy on them,” said Alawuba.
The Ministry of Roads and Transport also reacted positively to UBA’s firm commitment, saying it highlights a vote of confidence for the Kenyan infrastructure agenda and the important role of Pan-African institutions in development financing.