Kenya Goes for Another Sh368 Billion SGR Loan from China

President Kenyatta's administration is seeking another loan of Sh368 billion from China to complete the Standard Gauge Railway (SGR) line.

Kenya Railways Corporation acting Director Phillip Mahinga says negotiations between the countries on the multi-billion-shilling loan are ongoing and full details will be revealed later.

“We all know that the first phase of SGR from Mombasa to Nairobi cost Sh327 billion and the second phase Sh150 billion."

“For phase 2B, negotiations between the two governments are on so I will not give any figure at the moment,” he adds.

Mahinga further says the government is seeking a financing system that will ensure the railway; passengers, goods, and equipment are secure during the 974km journey from Mombasa to Malaba.

“SGR trains move 6,000 people daily, and we are concerned about our operations and security of the equipment,” Mahinga says 

“The movement of trains from Mombasa to western Kenya needs to be secure from terrorists and other challenges. We ask the Chinese government to support us in this area.”

China’s Chargé d’affaires Li Xuhang says the loan will be granted in form of concessional and hard loans.