New Deal Revives Kenya’s Standard Gauge Railway

A 2019 image of former President Uhuru Kenyatta inaugurating an earlier phase of the Standard Gauge Railway. Photo: AFP / SIMON MAINA

Kenya’s dream of expanding its Chinese-built Standard Gauge Railway (SGR) to the Ugandan border could be coming to fruition. A funding deal for the third phase of the railway project was announced following a trip to China by the country’s Finance Minister John Mbadi.

The third phase has stalled since 2019 when the China Exim Bank called for a commercial sustainability review of the project. This followed controversy around the loan deal for earlier phases, which was tainted by a lack of transparency and allegations of corruption. The new deal marks a step towards mixed financing models aimed at reducing debt.

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by CGSP Staff

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