Kenya's SGR project to become most expensive such project in the World ▷ Kenya News

- The government spends an average of KSh 800 million for every kilometer of SGR

- The cost is said to be two times that of the international average

- Nairobi will have borrowed about KSh 845 billion from Beijing after Uhuru and Raila sign the KSh 368 billion loan

- Kenyans are set to pay close to KSh 1 trillion after the SGR loans clock maturity

- With the country's debt almost crossing the KSh 5.4 trillion mark, experts have thrown into question Kenya's ability to offset the loan

As President Uhuru Kenyatta and Opposition chief Raila Odinga prepare to sign a KSh 368 billion loan in China to fund the SGR construction, it has emerged that the project has entered books of record as most expensive in the world.

The funding is expected to be injected in construction of Naivasha-Kisumu line and thus brings the gross amount Nairobi has borrowed from Beijing to about KSh 845 billion.

READ ALSO: Kenya’s SGR loan repayment to China shoots up to KSh 82.85 billion as 5 year grace period expires

READ ALSO: Raila to accompany Uhuru to China for KSh 368 billion SGR loan

According to a report filed by Daily Nation on Wednesday, April 24, it costs the government KSh 800 million to construct each kilometer of the rail. This makes the project most expensive in the world.

The price is estimated to be at least twice the international average.

READ ALSO:

During the first phase of construction, China extended a KSh 327 billion loan for the now operational Nairobi-Mombasa line.

The lender further pumped a KSh 150 billion loan for the Nairobi-Naivasha line which is on its last facets of construction.

READ ALSO:

READ ALSO:

The Naivasha-Kisumu SGR line is expected to gobble up the KSh 368 billion Uhuru and a high delegation of infrastructure and finance experts which is already in China for a signing ceremony.

Presence of Raila in the team has, however, elicited mixed reactions as the ODM chief was once strongly opposed to it.

Raila had poked holes in the Uhuru administration and criticised it for what he termed as excessive borrowing.

His allies were up in arms and equated the project to what they termed as misplaced priority.

READ ALSO:

READ ALSO:

In his argument, Raila noted that the heavy borrowing will milk Kenyans dry during repayment.

According to estimates, Kenyan will pay almost KSh 1 trillion for the loan due to accumulated interest.

The figure is almost equal to the amount the taxman collects annually.

Latest data from National Treasury, however, indicate that KRA has from July 2018 to March 2019 collected KSh 1.02 trillion.

The collection leaves the taxman with a KSh 585.27 billion gap for it to achieve the KSh 1.61 trillion target it had set for 2018/2019 financial year.

Do you have a hot story or scandal you would like us to publish, please reach us through [email protected] or WhatsApp: 0732482690 and Telegram: Tuko news.

The Man Who Built Kenyans a Road.

Source: Tuko.co.ke