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(REUTERS) Kenya to spend $3.27 bln on development projects

Kenya to spend $3.27 bln on development projects
Thu Aug 20, 2009 2:13pm GMT

NAIROBI (Reuters) - Kenya plans to spend 250 billion shillings over the next eight years on development projects such as irrigation and power generation, the cabinet said on Thursday. East Africa's biggest economy has suffered long droughts in the last few years and the government says that about 5.8 million Kenyans need food aid.

The projects include irrigation of food crops, hydro-electric power generation, supply of clean water, development of fisheries, water catchments conservation, creation of local employment and rural development.

"The cabinet has today approved the go ahead for implementation of 18 multi-purpose projects across the country over the next 8 years," a statement from the president's office said.

Kenya's agriculture-based economy is also feeling the destruction of forest cover with rivers drying up, hurting agriculture and tourism.

The lack of rain has also resulted in a power rationing programme because of low output by hydro-electric power generators, which is troubling business.

"The projects are expected to deal with some of the major challenges facing the country on a medium and long term basis," the statement said.

Labels: INVESTMENT, KENYA

posted by MrK @ 5:34 PM