The Railroad to Nowhere China Built Has Opened in Kenya


(Bloomberg) -- Kenya opened a new China-funded rail link as part of the government’s agenda to increase investment in infrastructure, and is seeking about 400 billion shillings ($3.8 billion) to upgrade roads.

The extension, which ends in a village 120 kilometers (75 miles) west of the Kenyan capital, Nairobi, is part of a project of a railroad stretching from the port city of Mombasa to the border with Uganda, but is only halfway complete. Its continuity became uncertain after China raised concerns about the project’s viability and withheld funding earlier this year.

The new section of the railroad and an inland container depot, that’s being built nearby, sets the ball rolling for the development of a special economic zone in Naivasha, President Uhuru Kenyatta said in an emailed statement. The government will mobilize resources from its exchequer and investors for the projects.

On funding for roads, Kenyatta said the government is weighing new public-private partnerships to bridge the gap. He broke ground for the building of a toll expressway to the nation’s main airport to help ease traffic congestion.

©2019 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.