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China has agreed to loan Kenya $71 million (6 billion shillings) for the construction of the National Optic Fibre Backbone Infrastructure (NOFBI) and e-government expansion projects, Kenya's Capital News FM reported Thursday (June 28th).

Joseph Kinyua, permanent secretary of the Ministry of Finance, told the paper that the two governments have been drafting the terms of the agreement and intend to complete and sign them by the end of July.

The proposed project will link the local area networks of 36 administrative districts in Kenya to the national fibre-optic cable, enhancing the quality of internet services. "Once this is completed, the project will also provide a safer, more reliable, stable and efficient basic communication network for the government and the Kenya citizens," Kinyua said.

So far, fibre-optic cable has been installed in several provincial headquarters, but Kinyua said they have yet to be linked together.

With faster Internet, Kinyua said the government will implement e-government initiatives in the health, banking and education sectors to foster economic growth.