Chinese government has signed Sh368 billion meant for extension of Standard Gauge Railway from Naivasha to Kisumu, a month after a trip by President Uhuru Kenyatta and Raila Odinga.
There were rumours that China had refused to sign the loan, a move that sparked outcry within Nyanza, given that Mr Odinga had assured residents of the probability of getting the loan.
In an interview with the Nation on Tuesday, Transport minister James Macharia said Phase 2B of SGR is still on course, dismissing claims that the project had been cancelled.
“Kenya is the entry gate of the SGR, which runs from Lamu-Mombasa-Naivasha-Kisumu-Lake Victoria all the way to the Atlantic Ocean in West Africa. However, Kenya cannot develop it on its own because it will not be viable due to the fact that 30 percent of cargo from Mombasa is on transit, of which 85 percent goes to Uganda. There is need to harmonise the SGR with what countries in the region are doing,” said Mr Macharia.
“On the future of the SGR and its status, Kenyans need to know that Phase 2A is 98 percent complete and will be operationalised in September. Eventually, the SGR will reach Kisumu and finally Malaba, only timing has changed,” he said.
He said the Exim Bank had okayed the loan, adding that it's only the timeline would change. Phase 2A that runs from Nairobi to Naivasha is set to be completed by September this year.
“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,” Mr Macharia told the Nation.
The latest development is a huge boost to Mr Odinga, who was ridiculed by his political competitors when it was claimed that the loan had been cancelled. Kisumu line will later connect Malaba.