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SGR to end in Naivasha after China says no to Uhuru

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Naivasha-Kisumu SGR: The Standard Gauge Railway (SGR) project that was to be constructed from Mombasa to Kisumu has flopped. Now, the infamous SGR projecr will end in Naivasha from where the old railway will continue to be used to Kisumu.

This has been painfully revealed by the President Uhuru Kenyatta-led delegation in China. President Uhuru, who is in China, was expected to sign a Sh. 368 billion loan which would have extended the SGR from Naivasha to Kisumu. His delegation included former Prime Minister Raila Odinga.

But it now seems that the loan did not come through.

According to Transport CS James Macharia, the SGR will be joined to the old meter gauge railway in Naivasha to speed up the resumption of transport services to Kisumu.

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

Instead of signing the Naivasha-Kisumu SGR mega deal, Kenya signed an operation and maintenance service agreement for the Nairobi to Naivasha segment of the SGR.

“.. the most important investment right now is to connect the SGR to Naivasha MGR so that come August there will be seamless connectivity,” CS Macharia said, the government choosing to hold its head high despite not achieving the much sought after Ksh.368billion.
“…it is not actually change of plan the issue is you have to prioritise given your immediate requirement, given what is important is creating a transitional point from Naivasha … what we have done is look at the logistics of connectivity initially connecting meter gauge with SGR because even if you started construction today from Naivasha to Kisumu it would take 4 years and we don’t want goods to take that long to get to Kisumu,” he added.

Kenya and China however signed two project delivery agreements totalling to Ksh.68 billion through concessional financing and public private partnership.
Konza Data Centre and Smart Cities Project are to be undertaken by Chinese telecommunications giant Huawei at a cost of Ksh.17.5billion.

The construction of the expressway from the Jomo Kenyatta International Airport (JKIA) to James Gichuru is to be handled on a PPP arrangement by the China Road and Bridge Corporation for Ksh. 51 billion.
President Kenyatta said the government has now adopted a comprehensive policy to guide investment procedures and processes, both at national and county levels.

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