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Gov’t Seeking Another Ksh368 Billion Loan From China For Final SGR Phase

[IMAGE/ COURTESY]

The government has revealed that it is seeking another loan of Ksh368 billion to help in the completion of the construction of the Standard Gauge Railway (SGR).

Speaking on the loan sought for by the government, China’s Chargé d’affaires Li Xuhang stated that the money would be granted to the government in form of concessional and hard loans.

Confirming the acquisition of the loan from China, Kenya Railways Acting Director Phillip Mahinga noted: “We all know that the first phase of SGR from Mombasa to Nairobi cost Ksh327 billion and the second phase Ksh150 billion.

“For phase 2B, negotiations between the two governments are on so I will not give any figure at the moment,” he added.

He added that the full details would be disclosed during the official opening of the Naivasha terminal in May.

Read: Transport CS James Macharia Bids For Chinese SGR Firm To Get Ksh2.5 Billion Rail Deal

Mahinga added that the corporation is involved in talks of financing a system that will ensure the railway, its passengers, goods and equipment are secure from Mombasa to Malaba in Busia County.

However, despite the government seeking the loan, Kenyans and various experts have raised alarms on the repayment status of the existing loans.

The government has been asked to also clearly highlight the repayment plan of the loan following revelations that the Mombasa port could be handed over to the Chinese as a way of servicing the previous defaulted loans.

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Written by Jael Keya

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