President Uhuru Kenyatta has made several profitable deals for Kenya during his tour to China. Uhuru who is attending the Belt and Road Forum for International Cooperation in the East Asia economic giant has signed deals worth billions of shillings especially in areas of infrastructure.
China is currently in discussions with Kenya for a Kshs. 370 billion loan to further extend the standard gauge railway (SGR) from Naivasha to Kisumu. This will push the cost of SGR to Sh. 847 billion.
The money will finance the construction of the third phase of the SGR, a 270km line between Naivasha and Kisumu.
On Monday, President Uhuru led a Kenyan delegation in making a formal request for additional funding from China Exim Bank.
“The funding request will undergo normal procedure of approval and Premier Li has promised to give it the adequate consideration and urgency it deserves,” State House Spokesman Manoah Esipisu told reporters in Beijing.
The Chinese loan used on the project is expected to cross the Sh. 1 trillion mark by the time the Kisumu section is extended to Malaba, a distance of 107 kilometres according to Kenya Railways.
Kenya built the Mombasa-Nairobi line at a cost of Sh. 692 million per kilometre.
The Chinese government also issued more funding for infrastructure projects including KSh 16.5 billion for the construction of the Nairobi Western bypass.