The Probase Manufacturing Sdn. Bhd of Malaysia and Meru County of Kenya signed a Memorandum of Understanding (MOU) on 6th September 2014 for construction of roads in the wider Meru County in Kenya. The occasion which took place at Timau in Meru county was graced by the High Commissioner of Malaysia in Nairobi, H.E Ismail, Salam, H.E Hon. Benjamin Cheboi, Governor Baringo County, H.E Hon. Isaac Ruto, Governor Bomet County and Chairman of Council of Governors in Kenya, H.E Hon. Wycliff Oparanya, Governor Kakamega County and thousands of members of the public.
The MOU was signed by Mr. Seow Cheng Soon, Managing Director for Probase Manufacturing Snd. Bhd while H.E Hon. Peter Gatirau Munya, Governor signed for the Meru County.
Probase Manufacturing Sdn. Bhd is a Malaysian company based in Johor and specialises in low cost road construction using soil-road technology for rural and plantation roads in Malaysia. The signing of MOU with one the counties in Kenya marks milestone for Probase Manufacturing Sdn. Bhd in expanding their operation outside Malaysia.
The MOU entails construction of 10 km road pilot project in Meru at cost of USD 3.6 million to be financed jointly by the Meru County and Probase Manufacturing. After successful completion of the pilot project, Probase will be contracted to undertake further 300 km road stretch within the county at a cost of USD 104,000,000.00. According to Probase Manufacturing, the cost of road construction will be funded by Exim Bank of Malaysia with Kenyan Government through Meru County providing sovereign guarantee.
The 10 km pilot project road between Kianjai - Mikinduri is expected to commence within this month following ground breaking ceremony immediately after the signing of MOU. The Malaysian company has already moved construction materials to the site and the project is expected to take three month to complete subject to weather patterns. The 300 km road construction is also expected to take three years after its commencement if all processes and procedures are finalised. Probase will also maintain the new road network Meru for five years at no additional cost.
Kenya has a road network of 146,000 km but on 14,000 km is tarmacked making most part of the country inaccessible during rainy season. The cost involved in road construction in Kenya is prohibitive ranging between Ksh 70 million ( US$ 814,000.00 a kilometre) while Probase technology will cost around Kshs 23 million (US$ 267,441.00). The use of probase technology in Meru in particular and Kenya in general is expected to revolutionize road construction sector in the county if successfully implemented.
The governors in attendance during the signing ceremony also expressed keen interest to engage the Probase Manufacturing Sdn. Bhd to undertake similar project in their respective counties.
Road network systems in Kenya is very important as it accounts for 90% of all cargo in the transport sector inspite of its dilapidated states in most parts of the country. The success of the project in Meru County will not only open up more opportunities in this country but also in other Eastern African countries such as Uganda, Tanzania, Ethiopia, Rwanda and Burundi. Probase Manufacturing Sdn. Bhd alone may not be able to meet the demand of these countries on the use of this technology to build cheaper road. It is therefore recommended that Malaysian investors and companies involved in road construction using cheap technology should consider venturing into this market. The best approach would be through Private Public Partnership (PPP).
