Transport CS James Macharia announced that the government has acquired a new loan from China to finance the final phase of the Standard Gauge Railway from Naivasha to Kisumu then to Malaba.
Macharia, who's is in China attending the Forum for China Africa Cooperation (Focac), noted that the project was on course and only the timelines for completion would change.
The CS revealed that he met the Chinese Minister for Commerce, Exim Bank officials, Uganda President Yoweri Museveni and his Transport minister on Tuesday to conclude talks on securing funds for the project.
He also confirmed that the Chinese Ministry of Commerce had approved the funding and the money was with the Exim bank.
Speaking to Kenyans.co.ke, a source from the Ministry of Transport who sought anonymity, confirmed that indeed the loan had been approved but it would take some time to come through due to logistics in the bank supposed to handle the deal.
“In fact, the funds had been approved by the Chinese Ministry of Commerce and are now with Exim Bank, which is looking into financial dynamics of lending according to the structure of each country,” Macharia reported.
Macharia also informed the Daily Nation that the government had to refurbish the old railway line from Naivasha to Malaba to make it more convenient and align it with the Malaba-Kampala Line.
“We had to rehabilitate the old railway to Malaba so that while it will take nine hours for goods to arrive in Naivasha, it should take the same time for the goods to reach Uganda, which is our biggest client,” he added.
Uganda has invested Ksh20.7 billion in restoring the old railway line linking Kampala to Malaba a move that made most Kenyans uneasy over the viability of the SGR, something that Macharia moved to dispel.
The CS further dismissed claims that Kenya signed a secret agreement with China allowing a mystery company with unknown local shareholders to run the SGR.
He confirmed that Africa Star Railway Operation Company Ltd, owned by China Road and Bridge Corporation (CRBC), will manage operations for 10 years.
