Kenya Revives Railway to Nowhere, This Time Without China Loans.

The article focuses on Kenya’s plan to resume construction of a Chinese-backed railway project halted in 2019 due to funding shortages, this time without new loans from China. Kenya aims to raise up to $4 billion by securitizing a 2% railway levy on imports to fund the 369-kilometer extension from Suswa to Kisumu and Malaba, with some remaining Chinese involvement through a $500 million investment by China Road and Bridge Corp. The project, Kenya’s largest infrastructure endeavor since independence, faces scrutiny from the International Monetary Fund over concerns that securitization may increase government borrowing amid Kenya’s rising debt and economic challenges. The railway’s initial phase was completed between Mombasa and Nairobi, but construction stalled on the second phase after China ceased funding. [Extracted from the article]