This archive report was first published on 17 October 2019.
On Wednesday, Kenya's President Uhuru Kenyatta officially opened the second phase of the country's new railway, a $1.5 billion project funded by China. The project, which will eventually link the port of Mombasa to Uganda, has been a flagship infrastructure project for the Kenyan government.
According to reports, the latest stretch of track cost $1.5 billion and runs from Nairobi to the Rift Valley town of Naivasha. Critics, however, have raised concerns that the cost of the railway is plunging Kenya into debt.
President Kenyatta inaugurated the second phase of the railway, waving the Kenyan flag, and then joined the first ride, listening to the on-board announcements. The new track is 120 kilometers long and has 12 stations, with passengers able to ride the trains, but the railway is mainly for cargo.
The railway will eventually lead to an inland container depot, from where containers will be distributed to Uganda and Rwanda, and to South Sudan. The train stopped at every station, where a cheering crowd awaited the president, who promised them that the new railway will bring prosperity.
President Kenyatta said, "The completion of the Nairobi Suswa section of the SGR project is expected to revolutionize the development of the surrounding areas." The loans for the project are with Chinese banks, with Wu Peng, the Chinese ambassador to Kenya, stating that China is not only lending but also investing in Kenya with the coming of the railway.
"We encourage Chinese enterprises to invest in the Naivasha ICD and the special economic zones," Peng said. The railway currently generates $75 million per year from passengers and cargo, with officials hoping to see revenues rise once the railway is connected to the neighboring countries.
