25.3 C
Kenya
Wednesday, October 16, 2019
  • NEWS

Why China said no to Uhuru’s Sh. 368 billion SGR loan request

Must Read

Kenya Attracts Major U.S. Investors

Five American multinational corporations are the latest firms to set base in Kenya, increasing the number of U.S. private-sector...

Why Kangundo Road is the place to buy land

Kangundo Road Plots: Do you know that Kangundo Road is currently providing some of the most prime plots for...

Ex Kiss 100 presenter Angela Angwenyi’s property to be auctioned

Angela Angwenyi NYS: Former Kiss 100 radio presenter Angela Angwenyi's multi-million house is set to be auctioned. The house which...

Kenya’s SGR Project: Details have emerged on why China refused to lend President Uhuru Kenyatta’s government a fresh loan of Sh. 368 for the extension of the Standard Gauge Railway line.

The fresh multi-billion loan was supposed to facilitate the construction of the SGR phase between Naivasha and Kisumu.

According to reports, China refused to give out the loan after the government failed to show how viable the project would be. Reports also say that China was not willing to give out the loan as a grant or loosen their tight conditions on it.

This is despite the Uhuru team agreeing to allow China to operate and run the railway line until it recovers all the monies spent on the project.

SGR to end in Naivasha after China says no to Uhuru

The failure to secure the loan has left an egg on the face of the president. It also means that the SGR will now terminate at Naivasha.

In an effort to salvage the project which has so far consumed hundreds of billions of money, the government has announced plans to link it with the old railway line that connects to Eldoret, Kisumu and Malaba.

Linking the two railway lines will consume an additional Sh. 40 billion. Currently, the old railway line is situated some 43 kilometres from where the SGR will terminate.

The SGR project has been one of Kenya’s most controversial projects. It’s viability and cost have regularly been put to question. So far, the SGR line between Nairobi and Mombasa which is in operation has raked in losses of over Sh. 10 billion.

“President Uhuru Kenyatta had asked for half of the money to be given as a grant and the balance be in a loan with more relaxed conditions. And, though Kenya accepted to allow the Chinese to build, run and hand it over once they recoup their money, the Chinese reportedly insisted on proof that the SGR will be viable. Nairobi asked for the grant to be given as part of the Belt and Road Initiative, officials said. The Chinese, though, insisted on collateral, something Nairobi had gone to Beijing to avoid,” a report that appeared in the Saturday Nation said.

- Advertisement -

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

118,388FansLike
11,207FollowersFollow
7,859FollowersFollow
186SubscribersSubscribe

Latest News

Kenya Attracts Major U.S. Investors

Five American multinational corporations are the latest firms to set base in Kenya, increasing the number of U.S. private-sector...

Why Kangundo Road is the place to buy land

Kangundo Road Plots: Do you know that Kangundo Road is currently providing some of the most prime plots for both commercial and residential development?...

Ex Kiss 100 presenter Angela Angwenyi’s property to be auctioned

Angela Angwenyi NYS: Former Kiss 100 radio presenter Angela Angwenyi's multi-million house is set to be auctioned. The house which is situated at Jacaranda Gardens...

Uhuru appoints Mary Wambui National Employment chairperson

Former Othaya MP Mary Wambui Munene has been appointed as the chairperson of National Employment Authority for a term of three years. The appointment of...

Fight in Raila’s home: The wealth fight story ‘The Standard’ killed

The fight in Raila's home: This was the big story that was to be headlined by The Standard newspaper on Monday. The story, though...

More Articles Like This

- Advertisement -
%d bloggers like this: