Kenya Secures More SGR Funds

The Government of Kenya secured billions more in funding for phase two of the Standard Gauge Railway as it signed three additional trade agreements with China. 

The agreements come as President Uhuru Kenyatta visited China for the third time in eight months, with Trade Cabinet Secretary Peter Munya and China’s Foreign Minister Wang Yi signing the deals on economic and technical cooperation. A Memorandum of Understanding (MoU) on the joint promotion of economic and trade measures relating to Beijing’s Forum on China-Africa Cooperation (FOCAC) was also agreed. 

In March the Government of Kenya confirmed that it was seeking a loan of Sh370 billion from China in order to complete the third phase of the standard gauge railway (SGR).

The first phase of the project to link Mombasa and Nairobi cost Sh327 billion, with the second phase costing Sh150 billion. While the amount required for the third phase unconfirmed sources suggest it will be the most expensive yet. Among the factors driving up the costs are security concerns on the route.