[VIDEO] SGR overpriced, not beneficial to Kenya's economy - David Ndii

Prof. Yash Pal Ghai, Muhuri chairman Khelef Khalifa, economists David Ndii and Odhiambo Ramogi during a consultative forum organised by Muhuri. /John Chesoli
Prof. Yash Pal Ghai, Muhuri chairman Khelef Khalifa, economists David Ndii and Odhiambo Ramogi during a consultative forum organised by Muhuri. /John Chesoli

NASA strategist David Ndii has on Wednesday described the SGR as an overpriced and ill-thought plan.

Ndii dismissed the project saying it does not add any benefits to the economy.

He wants members of the public to stop using the Sh327 billion railway until the loan is fully paid.

"From an economic perspective, you’d do more harm if you let it stay," Ndii said during an event in Mombasa.

The economist claimed that the government was spending too much public money on the service "which would instead be used to buy medicine for the masses".

He added that the government's decision to subsidise freight services is for it to keep the overpriced railway.

"The fact that the SGR can only operate with the public subsidy, particularly in government servicing its debts, means that you have taken money that would otherwise have been used to provide services to poor people," he said.

Ndii said the government is clearly "undermining the economy of a historically undermined region in favour of a historically advantaged part of the country".

Ndii, who was accompanied by Human Rights Activists, said the subsidised cargo services have led to loss of jobs.

"We tried to flag the issues around the project but the government did not organise sufficient public consultation and it did not disclose all the factors."

The NASA strategist claimed the negative impacts of the SGR were now coming to light adding that he had personally proposed that the project was not the country’s highest priority.

"At that the time we were still trying to finance Lapsset. We did not have financing for Lapsset. So, I suggested a better railway to evaluate the viability would be one from Lamu to Thika," he said.

Ndii further added that the government was negligent in its work claiming that the feasibility studies on the SGR is not viable.

"There was violation of process, if you look on information on which this railway was built and feasibility studies they are very shoddy and dishonest."

The economist take follows in the wake of a conversation on the by the Chinese contractor.

China Roads and Bridges Construction, the firm running the SRG, denied the claims which were featured in various media outlets.

Read:

Also read:

WATCH: The latest videos from the Star