Business 19 March 2026 Daily Monitor (Uganda)
Kenya Restarts China-Backed Railway Extension After Six-Year Delay
Kenya has relaunched construction on a key Standard Gauge Railway extension stalled for over six years due to funding shortages from China, now financed through revenue securitisation and joint ventures with Chinese firms. The project aims to connect to Uganda, countering past criticisms of it leading nowhere and symbolising debt trap concerns. Source: https://www.monitor.co.ug/uganda/news/kenya-revives-stalled-china-backed-railway-after-six-year-halt-5396760
Kenya kicked off the next phase of its Standard Gauge Railway (SGR) extension on Thursday, ending a six-year standstill caused by reduced Chinese funding. The line, originally linking Mombasa to Nairobi since 2017, had halted in the Rift Valley, far from its goal of reaching Uganda.
President William Ruto launched the works in Narok, dismissing critics by declaring, ‘It was never a road to nowhere.’ He symbolically fastened a rail bolt to mark the restart.
Funding now relies on securitising a railway development levy from cargo on the existing line, projected to generate 35 billion shillings ($270 million) yearly. China Road and Bridge Corporation (CRBC) remains the primary contractor, reflecting a pivot to risk-sharing investments over loans.
Experts note China’s shift post-2019 lending cuts, driven by debt sustainability worries. Renegotiated loan terms last year eased Kenya’s repayments, amid accusations of ‘debt trap diplomacy’ that Beijing denies.
This model supports other projects like a $1.5 billion highway with Chinese partners. Ruto and Uganda’s Yoweri Museveni will soon start the final leg from Kisumu to Malaba border.