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Kenyan Agency Mulls $1.46 Billion Bond to Fund Road Repairs

  • Securities to be backed by levy on fuel imported by country
  • East African exporter of tea, flowers needs better highways
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A Kenyan government agency plans to offer 150 billion shillings ($1.46 billion) of bonds to fund repairs to roads in the East African nation that have suffered from historic neglect.

The Kenya Roads Board is seeking approval from the Treasury to begin a July offering of the first tranche of debt that’ll be backed by a tax on fuel imports that provides a steady income, according to Executive Director Jacob Ruwa. The nation, which has about 161,450 kilometers (100,321 miles) of mostly unpaved roads, needs to spend about 400 billion shillings on long-delayed upgrades and maintenance, he said in an interview.