What KSH8.8Billion Chinese loan will do for Kenyatta university hospital

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Parliament has asked the National Treasury to immediately allocate Sh1.6 billion to Kenyatta University hospital to trigger the release of undisbursed loan owed to the Chinese government to operationalise the training facility.

Kenyatta University Teaching and Referral Hospital  will be the only one of its kind in the region, with an aim of not only providing quality learning and research environment, but to also play a role in meeting the millennium development goals of providing adequate and quality health care to the society”.

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The construction of this state-of-the-art hospital is a major milestone in the training of health care providers in the region as well as provision of health care services.

Upon its completion, the hospital will provide health care services unmatched in the region. The hospital will provide specialized research facilities, training as well as health care in oncology and cancer management, geriatrics, neuroscience, Gender Violence and Recovery Centre among others.

In line with the University’s Strategic Plan and Vision 2030 Development Plan, the state-of-the-art Kenyatta University Teaching, Research and Referal Hospital is under construction.

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“The project implementation was to take five years from 2011 at a cost of Sh8.8 billion. Two years after the intended operational year (2016), it is still idle with an amount of Yuan 142,862,209 (Sh1.37 billion) undisbursed,” Ms Sabina Chege, who chairs the National Assembly’s Committee on Health said in a report.

“During this period, the warranty of the equipment has expired and repayment of the Chinese Exim Bank loan is due to start on September 21, 2018,” Ms Chege said in the inquiry report.

The MPs said they were doubtful that the university meet its obligation to pay the Treasury interest due on September 30, 2019 considering the hospital is idle and Kenyatta University (KU) is currently facing financial challenges.

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The committee has recommended that the Treasury allocated the Sh1.6 billion through the supplementary budget for ratification by the National Assembly.

“This will trigger the release of undisbursed loan of Sh1.37 billion for personnel and capacity building,” the report says.

Ms. Chege said the hospital, once operational will ease the burden on Kenyatta National Hospital and neighboring level five hospitals of Kiambu and Thika.

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