Battle: Dar es Salaam vs Nairobi

Burden on Kenyan taxpayers as Treasury starts repayment of SGR loan





SGR accounts for the largest share of Exim Bank of China loans to Kenya including the Sh150 billion used to build the Nairobi-Naivasha line.

CHINA DEBT
President Uhuru Kenyatta’s administration has largely contracted debt from China since 2014 to build much-needed roads, bridges, power plants and the SGR.

This started after Kenya became a lower middle income economy, locking her out of highly concessional loans from development lenders such as the World Bank Group.

China’s influence on the country’s infrastructure development, however, started in earnest with construction of the Thika Superhighway between January 2009 and November 2012 at a cost of nearly Sh32 billion during the last term of President Mwai Kibaki.

The deal to fund the first phase of the SGR, Kenya’s single largest infrastructure project by cost since independence, saw Beijing overtake Tokyo as Kenya’s largest bilateral lender.

Construction of the Mombasa-Nairobi SGR cost about Sh692 million per kilometre while the $1.5 billion for the extension to Naivasha is estimated at about Sh1.28 billion per km.

The standard gauge railway (SGR) line raked in sales of Sh10.1 billion in its second full year of operations, signalling that the mega project would take longer to break even.

SGR REVENUES
Freight services, which started in January 2018, generated Sh8.4 billion in the year to June, internal performance data from Kenya Railways shows.

The data shows that China Communications Construction Company, the operator, increased sales from the passenger service to Sh1.76 billion, up from Sh1.23 billion a year earlier—reflecting a growth of 43 percent.

Kenya Railways had budgeted to earn some Sh24 billion from the cargo service in the year to June, falling 65.56 percent below target.

Some importers said their transport costs shot up by nearly 50 percent when they used the railway line due to extra fees, more time spent clearing goods at the Nairobi train depot and the need to send a truck to collect the goods from the facility.

Moving a 40-foot container to Nairobi by rail costs nearly Sh80,000 - roughly the same as a truck, says the Kenya Transporters Association.
But importers must also pay at least Sh25,000 for a truck to collect the goods from the Nairobi depot, breaching the Sh100,000 mark.


Burden on taxpayers as Treasury starts repayment of SGR loan

Treasury releases Sh10 billion to China’s Exim Bank as amount owed to lender jumps 130pc to Sh71.4 billion.
www.businessdailyafrica.com
 
All the best with your 1200 megawatts. I think shida yetu Africans sometimes ni kufanya projects yet millions of the populace live in squalor......our sgr for now is for both cargo and passengers.Thats our means for now.......not an electric one to please anyone
Lusematic said:
hii ngoma ikikamilika watalialia sana hawa kenge wakikenya

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120 km per hour aint as bad as it sounds......your so called electric will do 160km....furthermore the sgr is designed for an electric upgrade in the foreseeable future......
Simon said:
subiri ikamilike uone wakenya wenzako watavyomtukana Kenyata kwa kuwaletea train dizain ya TAZARA
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Those stations nazo are state of the art.....the talk of Africa right now..........ama nyinyi anything Kenyan kwa macho yenu kama kawaida na kamati ya roho chafu....
I am only wondering why with 1200 megawatts you should rush for stuff that ain't a priority especially for an ldc country. In the maslow's hierarchy of needs most of our African countries are still grappling with the basic social needs........we want to do big projects but not industrialize first.
Lusematic said:
wamepiga sana domo kuhusu zile mini passenger station za sgr Ila kadri zinavyozidi kukamilika wanaona vitu vinakuwa tofauti simple n unique

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Thats why you are Wondering now keep wondering when you are over rethink, its over nowadays dealing with fuel [emoji618]️, we seek developing to our energies like use of gas, electric etc and not buy oil from other nations. By the way its better to start the new step than sitting saying i will... i will... Ethiopia begun challenges occurred but always learn to face them.


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