Kenya loses as Tanzania inks multi-billion SGR deal with landlocked Burundi, DRC ▷ Kenya News

– Kenya had touted its SGR line as the cheapest and most efficient mode of connecting landlocked countries in East Africa

– China financed the construction of the 472 kilometre Nairobi-Mombasa line and another KSh 150 billion for the Nairobi-Naivasha stretch

– It, however, declined to sponsor the laying of Naivasha-Kisumu-Malaba line questioning its economic viability

– The partnership between Tanzania, Burundi and DRC is envisaged to ease transportation of imports and exports

– Kenya and Ethiopia are the only countries in East Africa that currently benefit from high speed modern railway transportation

Kenya’s dream to reap a fortune from its Standard Gauge Railway (SGR) has been dealt a blow after Tanzania signed an SGR deal that is set link Burundi and Democratic Republic of Congo (DRC) to the port of Dar es Salaam.

The mega infrastructure partnership was signed in Kigoma by Tanzania Finance Minister Isack Kamwelwe and his counterparts Roger Biasu (DRC) and Burundi’s Jean Bosco.

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Kenya had praised its SGR line as the cheapest and most efficient mode of connecting landlocked countries within East Africa. Photo: SGR.
Source: UGC

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According to Kamwelwe, once complete, the SGR line will be spur economic growth in the three countries by easing transportation of goods to landlocked Burundi and DRC, The East African reported on Sunday, December 8.

“The two countries have expressed their optimism and commitment in supporting the SGR project as both depend largely on Dar es Salaam Port for exports and imports,” said Kamwelwe.

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China financed construction of 472 kilometre Nairobi-Mombasa line and then pumped another KSh 150 billion for the Nairobi-Naivasha stretch. Photo: SGR.
Source: Facebook

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Tenders for the construction are set to be floated in 2020 and already, China and Trade and Development Bank for Eastern and Southern African have expressed interest in financing the project.

A feasibility study for the railway which will start from Uvinza in Tanzania to Musongati in Burundi was done by Gulf Engineering Ltd.

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Nairobi had touted its Northern Transport Corridor as the cheapest and most efficient mode of connecting landlocked countries in East Africa.

Tanzania has on its part, penned a deal with Rwanda to construct a 575 kilometre SGR line from Isaka (Tanzania) to Kigali in Rwanda.

In Kenya, Beijing pumped over KSh 327 billion for the construction of the 472 kilometre Nairobi-Mombasa line and another KSh 150 billion for the recently launched Nairobi-Naivasha stretch.

President Uhuru Kenyatta recently commissioned the Nairobi-Naivasha SGR line. Photo: State House.
Source: Facebook

China is, however, hesitant to finance the Naivasha-Kisumu then to Malaba at the Uganda border section arguing that that the project is not economically viable. The government, nonetheless maintains the construction is still on course.

If the project is fully implemented, then Kenya could stand a chance to start making meaningful income from freight services.

Freight services accounted for KSh 8.4 billion falling far below the government’s target of KSh 24 billion. Photo: SGR.
Source: UGC

Latest data indicates that the SGR generated KSh 10.1 billion in its second year of operation with its annual operating cost towering at KSh 18 billion.

Freight services accounted for KSh 8.4 billion falling far below the government’s target of KSh 24 billion.

Kenya and Ethiopia are the only countries in East Africa that currently benefit from high speed railway transportation. Photo: SGR.
Source: UGC

This comes at a time when the country’s administration is locked in a bitter fighter with road cargo transporters who have taken issue with the governments’ bid to make SGR an official means of transportation for cargo that lands at the Mombasa Port.

The SGR, however, witnessed improved sales in passenger services with amount raked in standing at Ksh 1.76 billion from KSh 1.23 billion realised during the same period under review in 2018.

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