Emerging details indicate that the government has decided to delay the planned extension of the Standard Gauge Railway from Naivasha in Nakuru to Kisumu city.

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This follows President Uhuru Kenyatta's inability to secure a Sh368 billion Chinese loan which was to be used for the project.

Consequently, the Transport Ministry has said that the government will concentrate on completing the railway at Naivasha before linking it to the old line.

Transport Cabinet Secretary James Macharia on Friday said that the government will then rehabilitate the old Meter Gauge Railway (MGR) which runs all the way to Malaba.

"No, we didn’t (sign the deal). We shall first complete connectivity of SGR and the MGR (Metre Gauge Railway) at Naivasha and then rehabilitate the line to Malaba border.

At the same time we shall commercialise special economic zones along the Northern Corridor in order to generate economic returns," he was quoted by the Standard.

The exercise is expected to consume Sh40 billion, but the CS said that the SGR has not been completely shelved, and will be revived once the loan is acquired.

"Eventually we will have to borrow, but you borrow what you can pay back, and then after you generate some returns you put those returns into a bigger project, which will be this one from Naivasha to Kisumu,” added Macharia.

Instead, Uhuru only secured Sh67.5 billion, with reasons behind his failure to secure the SGR fund remaining scanty.