The Chinese government has provided a loan of KES9.85bn ($109m) to Kenya to fund the expansion of the Kenyatta University Teaching and Referral Hospital.
Kenyan finance minister Uhuru Kenyatta said the money will be used to construct teaching and research facilities, purchase equipment and fund capacity development.
The project also involves the establishment of specialised research and training departments in oncology, neurosciences and alternative medicine.
The 500-bed hospital will be the first fully fledged public university hospital in Kenya.
The expansion project is expected to to start by the end of 2011 and scheduled for completion in the next five years.
