Kenya's Daily Nation published on 10 June 2019 an article titled "Chinese Firms True Winners of SGR Project" by Edwin Okoth.
The Chinese-financed and built standard gauge railway between Mombasa and Nairobi in Kenya has become largely an import tool to move cargo from Mombasa port inland with little being exported. For every 8 tons of cargo moving inland, just over one ton is exported. Much of the imported cargo comes from China.
Showing posts with label Kenya Railways Corporation. Show all posts
Showing posts with label Kenya Railways Corporation. Show all posts
Sunday, June 16, 2019
Tuesday, May 21, 2019
Will the Chinese-built and Financed Railway in Kenya Be a Success?
CNN posted on 21 May 2019 an in depth story titled "A Legacy of Lunacy Haunts Kenya's Old Railway. Will China's $3.6B Line Be Different? by Jenni Marsh.
The Chinese-built and financed standard gauge railway from Mombasa to Nairobi has much to commend it including the fact that it now handles 40 percent of the freight arriving at Mombasa port compared to only 4 percent for Kenya's now defunct narrow gauge railway. But the new line has been plagued by controversy as well as accusations that it has resulted in huge debt to China that Kenya will find difficult to repay. In addition, China now seems unwilling to fund further sections of the standard gauge railway line. Kenya has borrowed a total of $9.8 billion from Beijing as of 2017, which constitutes about 21 percent of its external debt.
The Chinese-built and financed standard gauge railway from Mombasa to Nairobi has much to commend it including the fact that it now handles 40 percent of the freight arriving at Mombasa port compared to only 4 percent for Kenya's now defunct narrow gauge railway. But the new line has been plagued by controversy as well as accusations that it has resulted in huge debt to China that Kenya will find difficult to repay. In addition, China now seems unwilling to fund further sections of the standard gauge railway line. Kenya has borrowed a total of $9.8 billion from Beijing as of 2017, which constitutes about 21 percent of its external debt.
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