The government will sign a Sh380 billion for the financing of Phase 2B of the standard gauge railway between September 1-4 in China, Transport Cabinet Secretary James Macharia has announced.
He said he will lead the Kenyan delegation to the signing ceremony.
He did not elaborate the financier, but it is expected that the Export-Import (EXIM) Bank of China, which has financed the first two phases through concessional and commercial loans, will finance the final phase.
Speaking during the Association of Architects of Kenya annual convention at Pride Inn Hotel on Friday, the CS said the SGR investment is transforming Kenya’s economy.
The Naivasha-Kisumu section is expected to increase cost of the whole SGR project to over Sh800 billion. The Mombasa-Nairobi phase cost Sh327 billion, the extension to Naivasha cost Sh150 billion.
China Road and Bridge Corporation (CRBC), which is the contractor for the Mombasa-Nairobi-Naivasha phases, is also iwill also build the last phase of the railway.
According to government plans, Phase 2B will start at the planned Naivasha Industrial Park where Phase 2A ends.
It will pass through Narok, Bomet, Kericho counties and terminate in Kisumu, where a Sh14.3 billion inland port will be put up.
The railway line will have 25 stations including a county station in Kisumu, six intermediate stations and 18 crossing stations. Macharia urged the architects and local engineers to position themselves to take up the 40 per cent contracts that will be given to locals.
“The contractor has to make sure 40 per cent of the tenders are given to locals. We, therefore, urge architect and local engineers to position themselves. You can prepare the architectural works for the station,” Macharia said.
The 120 kilometre stretch comprising of Phase 2A of the SGR covering the Nairobi to Naivasha line is more than halfway done, also funded to the tune of Sh150 billion by the Chinese government.