Land brokers are staring at losses of billions of shillings after President Uhuru Kenyatta failed to secure funding from China for the extension of the Standard Gauge Railway (SGR) from Naivasha to Kisumu.
Nation reports that speculators had bought parcels of land along the route so as to receive compensation from the government when the project begins.
Land prices had also gone up along the Naivasha-Kisumu stretch due to high demand.
Many expected to make quick returns referencing the Nairobi-Naivasha phase of the SGR where Ksh10 billion was given out in way leave compensation.
However, these speculators are now living in uncertainty after the government failed to secure the Ksh368 billion required to extend the line to Kisumu.
Speaking to The Standard on Saturday, Transport CS James Macharia confirmed that they had not signed the deal with China.
“No, we didn’t sign the deal. We shall first complete connectivity of SGR and the MGR (Metre Gauge Railway) at Naivasha and then rehabilitate the line to Malaba border.
At the same time we shall commercialise special economic zones along the Northern Corridor in order to generate economic returns,” he stated.
It's still not clear whether the government will seek funds for the project from other sources.
