Home BUSINESS NEWS China Refuses to Fund Construction of SGR Line until Kenya First Proves...

China Refuses to Fund Construction of SGR Line until Kenya First Proves Its Viability

5
11
China Refuses to Fund Construction of SGR Line until Kenya First Proves Its Viability

The Chinese government has reportedly declined to finance the construction of Standard Gauge Railway (SGR) line from Naivasha to Kisumu until Kenya proves its viability.

China is reported to have faulted the project after the Kenyan delegation presented a blueprint of the project during the just-concluded China-Africa Forum (FOCAC) with hopes of securing funding without proving its viability.

In a meeting with his Chinese counterpart Xi Jinping earlier this week, President Kenyatta requested China to give half of the Ksh380 billion that the 267-km stretch will cost as a grant and the remaining amount as a loan.

“All documents are ready. However, when we engaged the Chinese government, it was agreed they do support it, but we need to complete the feasibility study, not just for Naivasha to Kisumu but also all the way from Mombasa to Kisumu so that we can establish its commercial viability,” said Transport Cabinet Secretary James Macharia after the meeting with Chinese officials.

Kenya had already struck a deal with China Communications Construction Company (CCCC) the construction of the stretch.

In its first year of its operation, passenger train Madaraka Express operating on the SGR line between Nairobi and Mombasa raked in Sh1 billion or Sh2.7 million daily. With these figures, the SGR cannot meet its operational costs of Sh1 billion per month.

Some Kenyan economists such as David Ndii have in the past raised questions in the viability of the mega project. “We tried to flag these issues but the government did not organise sufficient public participation and they did not disclose all the factors. These things are only coming to light now,” said Ndii, adding that the project might take another 20 years to pick.

Cargo, which was supposed to be the biggest income earner for SGR has failed to bear results due to continued use of trucks.

 

11 COMMENTS

  1. Stop telling us about…
    Stop telling us about business when “businessmen” and “businesswomen” have looted Kenya dry. The public funds your relatives have stolen and used to put up ugly montrosities as rental properties is not business.

  2. If Uhuru cares for Kenyans,…
    If Uhuru cares for Kenyans, why can’t he use these borrowed money to build a modern national hospital?

  3. Maybe it’s time for us to…
    Maybe it’s time for us to prove our viability. With the diaspora remittances we could have funded the age without Chinese help. Thing is how do we figure out how to do this???

  4. Chinese r just yapping juu…
    Chinese r just yapping juu wameona Kenyans r smart pple juu Wr negotiating which Chinese don’t like??Trust me they will have no other choice but to complete the sgr juu If they refuse it will b given out to another country which will give the same deal by half half.U guys talking trash u should know how bizness works.I have said it here most of u who comments here leave in USA,uk,Canada,australia,Belgium where u use this train transport n u know how it bring millions yearly to the gavament,u pay thousands of taxes to this countries which u don’t belong leaving yr pockets empty so when we talk goid development u guys should b the first to support it.But as black pple we tend to think less n see less while we like praising n worshipping the white man stating how their countries r developed.U thinks they develop without loans.This western countries owes Chinese trillions of dollars n still borrowing to upright their developments n yet when African borrow we yap n vomit venom.Bure kabisa.

  5. Chinese need to stop…
    Chinese need to stop colonizing kenya with debt that they know Kenya can’t pay.
    Lets be honest, SGR is not a sustainable project and if the Chinese have basic common sense they will not give anymore loans to Kenya.

    CHINESE STOP GIVING KENYA LOANS!!!

  6. Even the chinese gluttonous…
    Even the chinese gluttonous as they are can’t stand the wonder boy’s eating habits.

  7. SGR should have stopped in…
    SGR should have stopped in Nairobi.
    Chinese should just accept they gave money to thieves.I hope they have insurance.
    They should stop disturbing Kenyans.

  8. All Kenyans of good will…
    All Kenyans of good will should support China on this one. Kenya should not live beyond its means. A choosen few are building mansions and driving the most expensive vehicles and decorating themselves with stolen public funds. All this is taking place while some Kenyans cannot afford a decent meal for the day. As if squandering public funds is not enough, we go humiliate the country by borrowing and begging for more for the so called “infrustracture”. We do not need hasty development that is not sustainable. Mr President, have all those who have stolen public resources pay back, that’s a big chunk of money and use it to pay off those that we owe. Give back dignity to the common mwananchi. For God’s sake those you are begging from are calling you and fellow Kenyans monkeys. Give us back pride by first stopping the borrowing and managing what we already have. For God’s sake “Know they station”. God help Kenya!!

  9. Thank you China! We can’t…
    Thank you China! We can’t keep borrowing blindly while the politicians are robing the proceeds from every sector.

  10. China is not Stupid and…
    China is not Stupid and Lives within it’s Means: In other words “China encourages its people to live on Cash” (and NOT Credit). THEN: Lends its Extra cash (for Interest) to Beggars like Kenya (and even the US). Now it knows it has sUcked Kenya; and Kenya has no Money except Kneel before it for Mercies. Just like it did to the US (the Superpower).

LEAVE A REPLY

Please enter your comment!
Please enter your name here