Construction of the Nairobi-Mombasa standard gauge railway is set to begin in May after the government completes full payment of loan agreement with China.
The Chinese Government will discharge money needed to start the project after the agreement is signed next month between the Kenyan and Chinese government.
The construction of the standard gauge railway will cost Ksh 425 billion ($5billion) in a deal which President Kenyatta signed during a prior visit by the Chinese Prime Minister Li Keqiang. Phase 1 of the construction will cost Ksh 327 billion.
The second visit of the Chinese government will be a follow up that will see the two countries change the MOU to a commercial agreement that will allow Kenya to draw funds.
Kenya set aside Sh22 billion in this year’s budget, and introduced a railway development levy of 1.5 per cent on all imports and has so far raised more than Sh15 billion.
Meanwhile, Kenya had set aside Sh22 billion in this year’s budget, and introduced a railway development levy of 1.5 per cent on all imports and so far it has raised more than Sh15 billion.
Extract: Daily Nation