The government of China has always held Kenya at its back in implementation of key development projects. After funding the first phase of the Standard Gauge Railway, Kenya went back to secure another construction of the Second phase which is almost done at the moment. The first phase runs from Mombasa to Nairobi whereas the Second phase runs from Nairobi to Nakuru.
The SGR project is aimed at running from Mombasa to Malaba, Busia County. Then how is the government going to fund the last phase of the project? Well, the government is negotiating with China for a loan of about Sh370 billion to complete the third phase of the standard gauge railway.
According to Kenya Railways Acting Director Philip Mahinga, the corporation is also holding talks to finance a system that will ensure the railway, its passengers, goods and equipment are secure as they snake through sparsely populated regions in its 974-kilometre journey from Mombasa to Malaba in Busia County.
During a briefing about the status of the multibillion-shilling endeavour at the Chinese embassy in Nairobi on Tuesday, the country’s Chargé d’affaires Li Xuhang said the amount would be in form of concessional and hard loans.
“We all know that the first phase of SGR from Mombasa to Nairobi cost Sh327 billion and the second phase Sh150 billion. For phase 2B, negotiations between the two governments are on so I will not give any figure at the moment,” Mr Mahinga said.
Mr Mahinga added that the full details would be given during the official opening of the Naivasha terminal in May.
However, an inside source said the interim amount is Sh368 billion. “SGR trains move 6,000 people daily, and we are concerned about our operations and security of the equipment,” Mr Mahinga said.
“The movement of trains from Mombasa to western Kenya needs to be secure from terrorists and other challenges. We ask the Chinese government to support us in this area.”
It is not clear how much it would cost to secure the railway line.