Kenya to spend another KES 380 billion Chinese loan on construction of Naivasha-Kisumu SGR

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Tuko: Kenya to spend another KSh 380 billion Chinese loan on construction of Naivasha-Kisumu SGR 21 Aug 2018 – – Transport CS Machaira and other government officials are expected to travel to China to seal the deal- The government is yet to pay back KSh 320 billion loan it used to build phase one of the SGR connecting Mombasa and Nairobi.

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Kenya, Uganda seek SGR funding from China. Kenya announced that it was seeking an additional $3.59 billion loan from China to extend the standard. on compensation for those people affected by the project and a new feasibility and bankability study showing that construction of the SGR makes.

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The Nairobi-Naivasha standard gauge railway project is funded using a loan from the Exim Bank of China. Phase 2B, from Naivasha to Kisumu, is expected to be undertaken once the Nairobi-Naivasha SGR is completed. The segment will cost Sh350 billion, the bulk of which is likely to be advanced by the Chinese bank.

At $1.92 billion, which translates to about Sh192 billion at current exchange rates, Tanzania appears to have secured the cheapest railway construction deal in the region, given that it will be spending nearly half of what Kenya spent to build the first phase from Mombasa to Nairobi.

Phase 2 (Nairobi-Malaba) has been divided into three sub-phases as follows: Phase 2A Nairobi-Naivasha Phase 2B Naivasha- Kisumu including the development of a new high capacity port at Kisumu and Phase 2C Kisumu-Malaba. The government has secured a loan from the Government of the Peoples Republic of China to support the development of Phase 2A.

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Kenya’s president Uhuru Kenyatta launched the construction of the Phase 2 of the Standard Gauge Railway project. The second phase of the project includes the development of the 490 km line linking Nairobi and Malaba, for which the Cabinet approved the conclusion of commercial contracts between Kenya Railways and China Communications Construction Company Ltd (CCCC) in March 2016.

The construction of the second phase of Standard Gauge Railway from Nairobi to Naivasha will be completed in September next year. The government had targeted to complete the construction on.

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The Kenyan Government has secured Sh 155 Billion Funding from the Exim Bank of China for the construction of Phase Two of the 490Km Standard Gauge Railway (SGR). The project will be constructed by the China Road & Bridge Construction Company and will traverse Naivasha, Narok, Bomet, Nyamira, Kisumu, Yala, Mumias to Malaba.