Even before the dust settles down from the previous china loan, the government is yet again on the 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 affairs Manager 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.
LOAN PAYMENT
Mr Mahinga added that the full details would be given during the official opening of the Naivasha terminal in May
Kenyans, the International Monetary Fund and experts have raised questions about the repayment status of the existing loans.
The terms of repayment have also been a subject of debate following revelations a few months ago that the port of Mombasa could be handed over to Chinese if Kenya defaults on the loans.
Mr Xuhang said the Mombasa-Nairobi railway earned $100 million in the 2017/18 financial year
