President Uhuru Kenyatta is set to visit China for the first time this year in April to secure Sh380 billion loan for construction of Naivasha-Kisumu Standard Gauge Railway line, it has emerged.
Last year, Uhuru failed to secure the much needed loan in September after Chinese President Xi Jinping reportedly refused to sign the deal after questioning feasibility of the project from Kisumu to Malaba.
According to the Chinese President Xi Jinping, Kenya needed to negotiate with Uganda for extension of the railway to Kampala for it to secure a loan, a move which Uhuru seemed to have succeeded after meeting President Yoweri Museveni for two days in Kenya.
While China funded the project from Mombasa to Nairobi at Sh327 billion, it also added another Sh170 billion for completion of the project to Naivasha. According to Business Daily, negotiations on Naivasha-Kisumu SGR are ongoing.
“We all know that the first phase of SGR from Mombasa to Nairobi cost Sh327 billion and the second phase Sh150 billion. For phase 2B, negotiations between the two governments are on so I will not give any figure at the moment,” Mr Philip Mahinga, Kenya Railways MD said.
At Mombasa on Wednesday, Uhuru gifted Museveni a land in Naivasha where Uganda is set to built a dry port, a move that has already caused resistance in the country.
The deal with Museveni, although still a top secret, could have informed Uhuru's planned crucial tour to Beijing to secure the much needed loan. China is also expected to find Kisumu-Malaba line at a cost of Sh170 billion.
“I have confirmed to President Museveni that with that development in Naivasha and then moving the SGR to Malaba, goods will be able to move from Mombasa to Malaba in just two days,’’ Uhuru said.
With Kenya's foreignfor debt hitting over Sh1.7 trillion, the country is struggling to pay, a move that angered a section of Kenyans who accuse President Uhuru Kenyatta of what they call 'reckless borrowing'.