June 20, 2019 IBOMLLC Team

East Africa Community’s Standard Gauge Rail network remains a mirage, with Kenya already shoulders-deep into Chinese debt

East Africa Community's Standard Gauge Rail network remains a mirage, with Kenya already shoulders-deep into Chinese debt

Innov8tiv
Innov8tiv – Blacks In Technology in USA, UK, Caribbean Islands & Africa

In 2013, East Africa states Kenya, Rwanda, and Uganda convened at the first Northern Corridor infrastructure summit in Uganda. The three countries came up with a resolution to build a high-speed standard gauge railway network linking the three countries, with the hopes it will spur up their socio-economic growth.

The Standard Gauge Rail (SGR) network was to span over a distance of 1,500 km and was supposed to be up and running by 2018. Well, it is June 2019, and the only nation that has laid down some of the railroads is Kenya. The SGR is now running from the coastal city of Mombasa to the capital Nairobi, a distance of some 487km, which was constructed at a cost of $3.8 billion.

90% of the funds to build the Mombasa-Nairobi SGR network was obtained by Kenya from the Exim Bank of China back in May 2014. The loan has a grace period of five years, and a repayment period of 15 years.

Kenya is now extending the SGR to Naivasha, some 120km west of Nairobi at a cost of $1.5 billion loan from China. Remember, in the original …read more

Read more here:: East Africa Community’s Standard Gauge Rail network remains a mirage, with Kenya already shoulders-deep into Chinese debt

      

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