This archive report was first published on 2 July 2019.
Published on July 2, 2019, Transport and Infrastructure CS James Macharia has assured that the Naivasha–Kisumu Standard Gauge Railway (SGR) construction is on course, set to boost trade in East Africa.
The SGR line is expected to join the four East African countries of Kenya, Uganda, Rwanda, and South Sudan, whose presidents signed a SGR protocol. The plan is that the line would later be extended to West Africa, with Mombasa-Lamu serving as the entry ports.
Global players have taken notice of the benefits Kenya will reap as a gateway to a vast area, attracting their business interests. However, the Kenyan portion of the SGR project has faced criticisms, with some justified concerns over the cost, land compensation, and contracts signed between the lending banks, contractors, and the government.
Chinese lending bank Exim Bank has raised concerns over the need to set up industries that produce export goods to boost revenues for the SGR project and pay off huge debts. The Kenyan leadership must address these concerns and take urgent action to establish these industries.
Private sector players are already earning a decent living from their firms and businesses, but the State must take the lead and start the industries required to move the country forward.
