Kenya Revives Railway Expansion with New Funding Approach

Kenya has resumed its multibillion-dollar railway extension, which was put on hold for six years due to funding issues with China. The project will now be financed through revenue securitisation and carried out by a Chinese contractor, signifying a shift in Kenya-China infrastructure project funding.

The railway initially connected Mombasa and Nairobi, with the project halting short of the Ugandan border when China reduced funding under its Belt and Road Initiative. Critics labeled it a 'railway to nowhere,' but Kenya's President Ruto confirmed strategic plans were in place.

Amidst claims of China's 'debt trap diplomacy,' Kenya and Beijing recently renegotiated loan terms for earlier phases. Kenya is implementing a levy on existing cargo lines to generate funds, as China and Africa now seek investment-based infrastructure models to tackle debt concerns.