Why China refused to finance railway it initially backed

What you need to know:

  • The latest developments come as a slap in the face for Nairobi, which had appeared assured of clinching the Sh368 billion financing to extend the line to Kisumu.

  • Sources told the Saturday Nation that the decision followed lack of progress on changing conditions imposed by the Chinese.

  • President Uhuru Kenyatta had asked for half of the money to be given as a grant and the balance be in a loan with more relaxed conditions.

It can now be revealed that difficult loan conditions were responsible for Kenya’s failure to get funding for the second phase of the SGR.

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