Kenya, China ink Sh327bn railway line agreement

Chinese Premier Li Keqiang (L) gives a speech next to (L-R) Uganda's President Yoweri Museveni, Kenya's President Uhuru Kenyatta, Rwanda's President Paul Kagame, and South Sudan's President Salva Kiir on May 11, 2014 after the signing of the Standard Gauge Railway agreement at the State House in Nairobi. AFP/PHOTO

What you need to know:

  • The standard gauge railway deal — which will lead to the construction of a 609-km railway line — will cost Sh327 billion. China will finance 85 per cent of the total cost through Export and Import (Exim) Bank of China while Kenya will pay the remaining 15 per cent through the railway levy charged on imported goods.

Hopes of building a modern railway line in East Africa rose yesterday after Kenya and China signed a financial agreement committing the two countries to the Sh327 billion mega project.

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