Yoweri Museveni Dealt Big Blow After China Rejects SGR Loan

Uganda’s dream of building one of their own Standard Gauge Railway (SGR) was shattered after Kenya reportedly failed to secure a Ksh368 billion loan from China to extend the line from Naivasha to Kisumu.

President Yoweri Museveni had edged his bet on the completion of Naivasha-Malaba SGR route to be able to extend the line to Kampala and eventually to Kasese to link it with the Congo border.

During his state visit to Kenya where he rode the Madaraka Express from Mombasa to Nairobi, Museveni expressed admiration for the project.

He stated that the SGR would significantly ease the transportation of goods to Uganda and enhance business in his country.

On Friday, Transport CS James Macharia stated that the SGR, which is almost reaching Naivasha, will now be linked to the old line to ensure there is no disruption in transportation.   

President Uhuru Kenyatta and his ODM counterpart Raila Odinga had travelled to China with reports indicating they intended to secure more funds for SGR extension line to Kisumu, though the state has refuted the claims.



However, additional media reports alleged China declined to extend the credit facility after the government failed to provide sufficient proof that the loan would be paid back.

Taking to social media, Foreign Affairs Cabinet Secretary Monica Juma sought to set the record straight after headlines emerged revealing the botched loan request.

She explained that the relationship between the Asian nation and Kenya was broader and that the SGR loan was not a top priority. 

"The relationship between Kenya and China is broader than the SGR. In fact, the SGR extension beyond Naivasha was never a priority agenda for the current mission to Beijing," she stated.