Setting up of standard gauge railway line to begin next month
A section of the standard gauge railway that was opened by president Uhuru Kenyatta in Changamwe in this picture taken on 10 April 2014. PHOTO/FILE
What you need to know:
- Ruto says visit by the Chinese prime minister will see deal signed after which funds needed for project take-off will be released
- Region’s ambitious rail initiative expected to start rolling
Construction of the Mombasa-Nairobi standard gauge railway will start next month after the government concludes a loan agreement with China.
The pact, which will see the Chinese Government release the money needed to start the project, will be signed next month.
Speaking on NTV News at Nine on Sunday, Deputy President William Ruto said Kenya would host Chinese Prime Minister Li Keqiang, during whose visit the two countries will put pen to paper on the final pact to finance the railway set up.
“… during his visit we intend to sign commercial agreements and begin the process of building the railway. The initial preparations are on course. We have made budget allocations for compensation and other suppliers and come 2018 the railway will at least be working up to Nairobi,” Mr Ruto told NTV.
The first phase of the project will cost of Sh327 billion. Kenya set aside Sh22 billion in this year’s budget, and introduced a railway development levy of 1.5 per cent on all imports and has so far raised more than Sh15 billion.
The visit by Chinese premier is a follow up to that by President Kenyatta during which a deal worth Sh425 billion (about $5 billion) to finance a railway line, energy project and improve wildlife protection was signed.
The two countries will convert the MoU signed then to a commercial agreement allowing Kenya to draw the funds.
Yet to begin serious work
While noting that the contractor has already set up sites at Embakasi Station, Nairobi, Mtito Andei and Samburu an update to Kenya Railway board of directors held two weeks ago, notes that serious work is yet to begin.
