Beijing will once again play a major role in the country’s next phase of construction boom after President William Ruto agreed to award China major ticket infrastructure projects, including the long-awaited extension of the Standard Gauge Railway (SGR) from Naivasha to the Ugandan border.
In his inaugural State visit to China, President Ruto agreed to extend the SGR line to Malaba on the border with Uganda-- ending years of speculation that the Chinese had abandoned the multi-billion project. The SGR currently runs from Mombasa through Nairobi to Naivasha.
The government’s grand plan has been to extend the SGR from Naivasha to the lakeside city of Kisumu for Sh380 billion, while the last leg from Kisumu to Malaba bordering Uganda will take another Sh122.9 billion.
President Ruto, who is in China for a five-day visit, held bilateral talks with his Chinese counterpart Xi Jinping. It was also agreed that the Chinese would take over the dualling of the Nairobi-Nakuru-Mau Summit–Malaba highway from the French.
A consortium of French contractors was primed to build the widened part of the 175-kilometre highway into a four-lane dual carriageway and strengthen another section in a project that would cost Sh150 billion.
However, the government pulled the plug on the project, citing prohibitive service fees over 13 years.
Instead, the Ruto-led government has opted to hand the project to the Chinese, who are responsible for building some of the biggest infrastructure projects in the country including the SGR and the Nairobi Expressway.
President Ruto’s visit to Beijing comes at a time when China and US are engaged in a fractious trade war, that has left developing countries divided on which side to back.
“This cooperation cements Kenya’s role as a key Belt and Road Initiative and regional logistics partner while integrating East Africa’s transportation network and enhancing intra-regional trade,” said State House in a statement.
“Additionally, China has opened the door for increased private sector investment, which will be channelled into these infrastructure projects through Public-Private Partnerships, further accelerating development and deepening economic ties,” added State House.
China, which has built most of the projects in Kenya using debt, has been going slow on loans and instead opted for public-private partnership (PPP).
Already, Chinese firms dominated their foreign peers in PPP projects, having been linked to five such projects valued at Sh190 billion, including the country’s first toll road, the Nairobi Expressway.
