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The government will spend Sh6.5 billion to set up an Intelligent Traffic Management System (ITS) in Nairobi to reduce dependence on traffic marshals.

The Kenya Urban Roads Authority says it has already issued the contract to a Korean firm Cheil Engineering Company which will build the system which will automatically direct traffic.

According to KURA the move will save the country close to Sh1.50 billion lost every month through Traffic Jams. Nairobi is the second most congested city in Africa and the fourth in the world with several reports showing that the traffic congestion cost an estimated Sh100 billion annually in lost productivity.

A research by IBM revealed that Nairobi residents are taking an average of 57 minutes to travel in the city resulting in Kenya losing an estimated Sh50 million a day due to time wasted on the road.

The project will be funded by the Economic Development Cooperation Fund through Export-Import Bank of Korea.