President William Ruto will in his second trip to China make another attempt to secure infrastructure funding after his initial request in October for $1 billion financing to unlock stalled projects failed to sail through.
State House in a statement on Sunday said President Ruto’s priorities as he attends the Forum on China–Africa Cooperation (FOCAC) 2024 between September 4-6 will be agreements on support of infrastructure projects.
These projects include construction of rural roads across the country, Nairobi Intelligent Transport System, Bosto Dam Water Supply Project and Phase III of upgrading TVET equipment workshops.
Additionally, State House said the President’s trip is expected to yield positive results in conclusion of discussions on the extension and completion of the standard gauge railway towards Naivasha-Kisumu-Malaba, dualing of Nairobi Northern bypass, as well as talks on establishing a pharmaceutical park, Preferential Trade Agreement and Investment Protection Agreement.
“President Ruto’s visit will strengthen joint efforts to diversify projects to cover agriculture, food security, creative economy, e-commerce, manufacturing , health, encironmental conservation and financial services,” State House spokesman Hussein Mohamed said.
STALLED PROJECTS
Last week, Budget Chairman in the National Assembly Ndindi Nyoro (Kiharu) announced that Kenya had secured Sh40 billion loan from China to unlock stalled projects in 15 counties starting September.
Phase 2B from Naivasha to Kisumu is expected to cost Ksh380 billion, while phase 2C, from Kisumu to Malaba, will take another Ksh122.9 billion.
There is also a plan within the Lamu Port-South Sudan-Ethiopia-Transport corridor project to have the line move from Mariakani in the coastal city of Mombasa to Lamu and Isiolo in Northeastern Kenya. From Isiolo, the SGR will be connected to the northeastern town of Moyale, which borders Ethiopia in the North.
But these projects are on the backdrop of a drop in Chinese financial support to Kenya, with latest estimates for the 2023-24 showing a fall to just Ksh1.74 billion, the lowest since 2008. This is a significant drop from the Ksh29.5 billion Kenya received in 2021-22 and Ksh71.2 billion in 2017.
When President Ruto travelled to Beijing in October 2023 for the Third Belt and Road Forum for International Cooperation, the completion of the SGR was top of his priority, even pitching for joint bid with Uganda, the DRC and Congo Brazzaville.
Speaking during the Kenya-China investors roundtable in Beijing at the time, President Ruto said talks had begun for the joint initiative in bid to improve flow of cargo and make the northern corridor competitive after the SGR stalled in Naivasha.
“Why we are discussing with China on extending the Standard Gauge Railway beyond Naivasha into Uganda, DRC, all the way to Congo Brazzaville is because we want to connect the eastern coast of Africa to the western coast of Africa using the SGR,” President Ruto said.
“We have had conversations with the Presidents of Uganda, DRC and Congo Brazzaville and we have all agreed on the need to extend this piece of infrastructure as a means of facilitating trade across our continent and making sure companies like yourselves, who set up in Kenya, not only have access to the Kenyan market but also the Eastern African and continental market. We have made the decision that is the way to go,” Ruto told the investors.
There has not been much progress on the project since then.
In the plan, the railway will extend to Kampala, Kasese to Mpondwe near the border with DR Congo. It will also head to Rwanda and South Sudan to make the northern corridor competitive.
