Kenya launches $13.8b railway to boost trade

The president of Kenya, Uhuru Kenyatta yesterday launched the construction of a Chinese-funded $13.8 billion (10 billion euro) flagship railway project expected to increase trade and boost Kenya’s position as a regional economic powerhouse.The key transport link, to run from the port city of Mombasa to the Nairobi, will extend to Uganda, and connect to Rwanda and South Sudan.“This railway will develop not only Kenya but the whole region,” President Kenyatta told crowds at the ground breaking ceremony.“East Africa will become a competitive investment destination. A busy East Africa is good for us a country,” Kenyatta said.Kenyan media have described the project as the region’s largest infrastructure project.“This is a landmark project both for Kenya and East Africa,” China’s ambassador to Kenya Liu Guangyuan said.President Kenyatta hailed the Chinese President, Xi Jinping, for his personal interest in the project and his government’s immense support.China has is funding the project’s first phase (450-kilometre) section from Mombasa to Nairobi. Work on that section, by the state-owned China Road and Bridge Corporation (CRBC), is expected to be completed by 2017.“Presently our region relies mostly on road transport,” Kenyatta said.“I am looking forward to waving off the first train to Kigali via Nairobi and Kampala, delivering the promise of prosperity for all our east African peoples,” he added.The new railway will see passenger journey time from Mombasa to Nairobi cut from the current 12 hours to around four, which is a half the current driving time on crowded and pot-holed roads.Last year, Kenya launched the construction of a massive port, railway and refinery project in Lamu, a $24.5 billion scheme aimed at connecting Ethiopia and oil-rich South Sudan.