China and Kenya partner to finish ‘most consequential’ rail project

Kenya has revived construction on its multibillion-dollar Standard Gauge Railway (SGR) extension that stalled more than six years ago, replacing heavy sovereign debt with innovative financing after renegotiating its loans with China.Kenyan President William Ruto earlier this month broke ground on the 264km (164-mile) Naivasha–Kisumu section in Narok in the country’s southwest, then travelled to Kisumu where he and Ugandan President Yoweri Museveni launched the 107km segment to Malaba on the border with Uganda.The modern infrastructure replaces the “Lunatic Express”, the British-built metre-gauge railway in service since 1901.Ruto called the rail project the country’s “most consequential” development project, arguing it would slash transport costs and that the investment came as Kenya was managing its debt prudently.The first phase of the SGR project was heavily financed by loans from the China" class="entity-link entity-organization" data-entity-id="87919" data-entity-type="organization">Export-Import Bank of China. Kenya has pivoted to a new domestic and public-private funding model to extend the line further. Photo: EPAThe Chinese firms aimed to complete the project by June next year, just ahead of Kenya’s presidential election, Ruto added.