This archive report was first published on 8 July 2021.
Kenya's ambitious plan to ease congestion in Nairobi by linking Jomo Kenyatta International Airport (JKIA) to the city's central business district via a railway line has suffered a major setback. President Uhuru Kenyatta's visit to Paris last week ended without securing a €128 million (Sh16.3 billion) loan from France to finance the project.
According to Transport Cabinet Secretary James Macharia, no agreements were signed during the visit, and the project's timeline has been delayed. The railway line, which was expected to be completed by August, will now face further delays.
The project, which aims to shorten the travel time between the CBD and JKIA, has been plagued by tender wars and concerns over Kenya's ballooning debts. The National Treasury had raised concerns over the secret procurement of a consortium of five French firms, including Egis group, to build the new railway line.
China, which provided a Sh500 billion loan for the construction of the Standard Gauge Railway (SGR) line from Mombasa to Nairobi, is also interested in the deal. However, critics have raised concerns over Kenya's growing debt and the potential risks associated with Chinese loans.
President Macron's visit to Nairobi in March 2019 had signaled that an agreement on the loan would be closed by June 30. However, the deal has continued to face challenges, including French-Chinese rivalry over the railway project.
