China Eximbank provides RMB 271.1 million government concessional loan for E-Government Project (Linked to Record ID#31091)

Project narrative

In November 2006, the Chinese Government signed an agreement in which it agreed in principle to finance the Government of Kenya's E-Government Project at an estimated cost of $42 million. Then, on December 24, 2007, China Eximbank and the Government of Kenya signed a government concessional loan (GCL) agreement [CHINA EXIMBANK NO GCL 2007(47)(218)] worth RMB 317,000,000.00 for the E-Government Project. The face value of the loan was subsequently revised to RMB 271,151,506.77. The loan was provided with the following borrowing terms: a 2% interest rate, a 20.25 year maturity, and a 7.6 year grace period. The loan was scheduled for repayment in semi-annual installments between September 21, 2015 and March 21, 2028. The borrower made principal repayments worth RMB 10,846,060.20 between July 1, 2020 and June 30, 2021 and RMB 21,692,120.43 between July 1, 2021 and June 30, 2022. The loan’s amount outstanding was RMB 173,536,963.85 as of June 30, 2020, RMB 151,844,843.39 as of June 30, 2021, and RMB 130,152,722.93 as of June 30, 2022. The purpose of the project was to build a secure network for Kenyan e-Government activities called the Kenyan Government Unified Messaging System (GUMS) Project and thereby address disparities in technology that lead to less efficient electronic communication among Kenyan government officials. It also involved the provision of software and computer-based security, and the construction a two-story complex to house the Kenyan Government's network files. Other objectives included: improving efficiency in internal government communication and enhance collaboration among officers through implementation of an Electronic Messaging and Collaboration System and a Unified Communications System; improving the management of human resources information by deploying a centralized and integrated Human Resources Management System; and increasing access to information technologies in both the central and county offices by providing access devices including desktop computers, laptops and printers. ZTE Corporation was responsible for implementation. The project reportedly commenced in 2008, and according to Kenyan Treasury's external debt register and the e-ProMIS, disbursements of the China Eximbank loan for the project continued to take place between 2010 and 2015. However, the precise commencement and completion dates for the E-Government Project are unknown.