US$1.5 billion China-funded rail line opens in Kenya amid criticism over its economic feasibility

Kenyan President Uhuru Kenyatta takes maiden ride on latest section of Standard Gauge Railway though it will not open to freight traffic until the end of the year

Analysts say line must be extended to Ugandan border to make commercial sense, but Beijing has yet to confirm funding for final phase

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China has provided about US$4.7 billion to build the first two phases of the Standard Gauge Railway. Photo: Reuters

Published: 8:15am, 18 Oct 2019Updated: 1:14pm, 21 Oct 2019

The second phase of a multibillion-dollar railway in Kenya funded and built by China opened to passenger traffic on Thursday to little fanfare but amid growing concerns about its financial viability.

The 120km (75-mile) section was built at a cost of US$1.5 billion and runs from the capital Nairobi to Naivasha, a town in the Central Rift Valley.

When the US$3.2 billion first phase of the line, which runs 470km from the seaport of Mombasa to Nairobi, opened in 2017, Kenyan President Uhuru Kenyatta was joined at an official launch ceremony by Chinese President Xi Jinping’s special envoy State Councillor Wang Yong.

But there was no such pomp on Wednesday when Kenyatta and other local officials were joined only by Wu Peng, China’s ambassador to Kenya, for a maiden ride on the Standard Gauge Railway (SGR), as it is formally known.

The president did use the opportunity, however, to hit back at those who have described the project as a white elephant, insisting it would bring huge economic benefits to the country.

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