The government is seeking Ksh3.7 billion through private-public partnerships in an effort to expand Standard Gauge Railway (SGR).
Speaking on Tuesday, March 14, Labour Cabinet Secretary (CS) Florence Bore revealed that the expansion would see SGR extended to the Athi River Export Processing Zone (EPZ).
Supporting the move, Trade CS Moses Kuria revealed that the project would exponentially increase revenue from the apparel industry.
“We want to maximise returns from EPZ industry, if we are able to get partners to finance the project, it will generate a lot of income,” Bore wooed potential investors.
According to the government, the project will take 24 months and will attract local and international investors once done.
The Athi River EPZ produces garments for export and the cargo is first moved to Nairobi so that it can be transported to Mombasa Port through SGR.
With the expansion of SGR, the cargo will be moved directly from Athi River to Mombasa Port cutting costs and increasing profit margins.
Upon completion of the project, the government announced it will procure two cargo trains to facilitate transport logistics for the apparel.
Kuria revealed that the project would exponentially increase the fortunes of Kenya’s manufacturing industry.
“The African Growth and Opportunity Act (AGOA) market accounts for 0.01 per cent, which means we have a huge market.
“We are only exporting goods worth Ksh65 billion and we will be able to raise that figure to Ksh649 billion,” the Trade CS remarked.
AGOA is a legislation meant to significantly enhance market access to the US for qualifying Sub-Saharan African (SSA) countries.
SGR was former President Uhuru Kenyatta’s legacy project and was built at a cost of Ksh467 billion and remains the country’s most expensive infrastructure project.
