The funding for the extension of the standard gauge railway to Malaba remains a puzzle as the Ruto administration flip flops about the financier.
Adding to the confusion was an announcement by Foreign Affairs CS Musalia Mudavadi on January 16 that the Chinese would finance the extension of the railway line.
In a statement after meeting the newly appointed China Ambassador to Kenya Guo Haiyan, Mudavadi said the Chinese envoy had reaffirmed her country’s commitment to finance the extension of the SGR from Naivasha to the Malaba border and the Belt and Road Initiative, which is set to enhance the Nairobi-Nakuru-Malaba road network.
“As Kenya continues to strengthen its strategic partnership with China, this collaboration will play a significant role in driving economic growth, fostering regional development, and contributing to broader prosperity across the African continent,” Mudavadi said.
The project in question is Phase 2B of the SGR construction from Naivasha to Kisumu, which is estimated to cost Sh380 billion, while Phase 2C, from Kisumu to Malaba will need another Sh122.9 billion, totalling 503 billion.
Mudavadi’s announcement was confusing because just two days earlier, President William Ruto had indicated Kenya was exploring a partnership agreement with the UAE to extend the railway from Naivasha to connect Kenya, Uganda and South Sudan.
This communication suggested attempts at convincing the Chinese to fund the completion of the project had not borne fruit, thus seeking alternatives. He had made two attempts at the highest level, and several others through then Transport CS Kipchumba Murkomen.
In September last year during his second visit to China, President Ruto indicated they had discussed the project with his host, President Xi Jinping.
“Discussed various projects such as the Rironi-Mau Summit-Malaba dual carriageway, Galana-Kulalu Irrigation Project, Bomas International Conference Centre and the expansion of the SGR into the region,” President Ruto said on X.
Announcing his trip to Beijing, State House had said the President’s visit was expected to yield positive results in conclusion of discussions on the extension and completion of the SGR towards Malaba.
Already, to fund construction of the SGR from Mombasa to Naivasha the Kenyan has borrowed $5 billion from the Export-Import Bank of China.
JOINT BID PROPOSAL
During his inaugural visit to China in October 2023, President Ruto sought funding for the extension of the SGR in a joint bid with Uganda, DRC and Congo, but wasn’t successful.
In July of that year Kenya and Uganda had announced they were seeking $6 billion to extend the railway in a joint bid. Transport ministers Murkomen (currently in Interior) and Katumba Wamala ( Uganda) had agreed to jointly source for financing, either in form of loans or a public-private partnership arrangement, for the project to resume, which meant China was not under consideration.
However, during his visit to Beijing in October, President Ruto said there were attempts to bring China on board to complete one of the key Belt and Road Initiative projects in the country.
“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.
“It will also make 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 investors at the Kenya-China investors roundtable in Beijing
In the plan, the railway would extend to Kampala, Kasese to Mpondwe near the border with DR Congo. It would also head to Rwanda and South Sudan to make the northern corridor competitive.
But amidst the financing dilemma, Kenya Railways MD Philip Mainga earlier told the Star they have for the last three months been engaging stakeholders in areas where the line will traverse.
“We have been engaging stakeholders for the past two to three months in the whole line from Naivasha, Narok to Malaba,” Mainga said.
