Museveni and Kenyatta Discuss SGR Project

Kenya on Wednesday offered Uganda land for building a dry port as part of the Standard Gauge Railway (SGR) project. The announcement was made during a state dinner hosted by President Kenyatta for President Museveni in Mombasa. 

During President Museveni’s visit the two leaders reiterated their support for the project and they are expected to travel on the route from Mombasa to Nairobi on Thursday.

Museveni praised Kenyatta’s work on the project to solve delays. The two leaders also discussed the further development of the line to Kampala. The transport of Ugandan oil by the Kenya Pipeline Company was also discussed. 

Earlier this month it was reported that the Government of Kenya is seeking a loan of Sh370 billion from China in order to complete the third phase of the standard gauge railway (SGR).

The first phase of the project to link Mombasa and Nairobi cost Sh327 billion, with the second phase costing Sh150 billion. While the amount required for the third phase unconfirmed sources suggest it will be the most expensive yet. Among the factors driving up the costs are security concerns on the route.

According to China’s Charge d’affaires Li Xuhang the finance is likely to be provided in the form of concessional and hard loans. However, concerns have been raised surrounding issues of loan repayment.