The government has awarded a Sh700 billion contract to two Chinese companies to extend the Standard Gauge Railway (SGR) from Naivasha to Malaba, a move set to boost trade and transport across the region.
China Communications Construction Company and China Road and Bridge Corporation are the two companies contracted to undertake the project to extend the SGR line, which will cover the remaining part of the project to Kisumu and Uganda.
However, the project has kicked off as expected, with the government acknowledging the importance of the project in the improvement of transport in the region. During the launch of the project last month, President William Ruto said the project would enable the country to transport goods efficiently, which would reduce the cost of doing business in the country.
When the project is completed, the new SGR line will replace the old metre gauge railway line, which has been in use for the last century and is popularly known as the ‘Lunatic Express.’ This project is expected to help the government transport cargo more efficiently between Kenya and other countries in the region.
Some of the funds will be raised through the Public Private Partnership, while the government will also contribute some of its funds. This marks a shift from previous phases of the SGR, which largely depended on loans from China.
The new plan comes after Kenya renegotiated its previous SGR loan agreements, including extending the period for repayment. This, say authorities, aims to reduce debt burdens even as the project implementation continues.
This railway line is also intended to link up with Uganda, with the country’s President Yoweri Museveni seeking funds to complete the project on his side.
This railway line has been noted as a significant project in the enhancement of trade in the region and the linking up of countries in a more efficient manner.
As the project begins to take off, the focus of the government will be on the costs and implementation of the project within the stipulated period.
