How feasibility study can help SGR extension blunders

The indictment of the new railway infrastructure is despite the high cost that it has come with.

Kenya spent Sh327 billion for the first phase of the SGR and is spending another Sh150 billion for phase two to Naivasha.

A further Sh400 billion will be spent in a third leg taking the railway to Kisumu.

However, funding for the latter section has hit a snag, with Beijing calling for a feasibility study of the whole project that is proving hard to break even.

Uganda is also weighing its options, toying with the idea of revamping its medium gauge line, which would derail the viability of the SGR even further.

Meanwhile, Kenya will start repaying a loan for what is shaping up to be a white elephant. This year, Kenya will pay over Sh56.7 billion, or 0.7 per cent of the economy, for the SGR according to Treasury documents.

SGR-station-Mombasa

Paying back for the loss-making railway will reduce Kenya’s disposable income by 8.8 per cent as the five-year window period expires in 2019.

Kenya Railways hopes that if they fix efficiency at the port, they may still save face and make the SGR less expensive hence attract freighters away from the road.

The report indicates that numerous State agencies at the hub have also been increasing the time taken by importers to clear their goods, thus increasing inefficiency.

According to the technical committee, only essential Government agencies should be stationed at the port, while others can do the job outside the port.

This would mean that the one-stop service shops set up at the port have been unnecessary, congesting spaces while slowing down importers clearing their goods.

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