The Chinese government will provide a 50-million-yuan (about 6.09 million US dollars) interest-free loan to Kenya, which is earmarked for a road project.

Visiting Chinese Assistant Minister for Foreign Trade and Economic Cooperation Xu Bingjin and Kenyan Finance Minister Christanus Okemo signed the agreement in the Kenyan capital Nairobi Monday.

The loan will be utilized to build a 54-kilometer section of road in Kenya, according to the agreement.

Kenya is satisfied with China's economic cooperation and assistance in such areas as health, road construction and the development of human resources, Okemo said at the signing ceremony.

"With both being developing countries, China has made great efforts to help Kenya," said Xu. "The agreement will boost the bilateral economic ties to a new stage."

The Chinese assistant minister held talks with Kenyan President Daniel arap Moi and Minister for Roads and Public Works Andrew Kiptoon Monday.

The Chinese delegation arrived in Nairobi last Saturday and left for Madagascar Tuesday. (Xinhua)