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China-Africa relations
ChinaDiplomacy

China and Kenya partner to finish ‘most consequential’ rail project

New financing breathes life into long-stalled Standard Gauge Railway extension across African country at estimated cost of US$5.4 billion

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Kenyan President William Ruto tightens a railway line bolt during a groundbreaking ceremony for the Naivasha–Kisumu–Malaba Standard Gauge Railway extension in Narok, Kenya, on March 19. Photo: Xinhua
Jevans Nyabiage

Kenya has revived construction on its multibillion-dollar Standard Gauge Railway (SGR) extension that stalled more than six years ago, replacing heavy sovereign debt with innovative financing after renegotiating its loans with China.

According to Kenyan officials, the Chinese firm China Communications Construction Company (CCCC) and its subsidiary, China Road and Bridge Corporation (CRBC), will build the railway’s two remaining sections at an estimated cost of US$5.4 billion.

Kenyan President William Ruto earlier this month broke ground on the 264km (164-mile) Naivasha–Kisumu section in Narok in southwest Kenya, then travelled to Kisumu where he and Ugandan President Yoweri Museveni launched the 107km segment to Malaba on the border with Uganda.

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The modern infrastructure replaces the “Lunatic Express”, the British-built metre-gauge railway in service since 1901.

Ruto called the rail project the country’s “most consequential” development project, arguing it would slash transport costs and that the investment came as Kenya was managing its debt prudently.

The first phase of the Standard Gauge Railway project was heavily financed by loans from the Export-Import Bank of China. Kenya has pivoted to a new domestic and public-private funding model to extend the line further. Photo: EPA
The first phase of the Standard Gauge Railway project was heavily financed by loans from the Export-Import Bank of China. Kenya has pivoted to a new domestic and public-private funding model to extend the line further. Photo: EPA

The Chinese firms aim to complete the project by June next year, just ahead of Kenya’s presidential election, Ruto added.

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