LEVEL PLAYING FIELD

Huge Chinese SGR loan will save Kenya funds for growth

The Sh380 billion would have cost the country growth projects if it funded the project itself

In Summary

• As developed countries invest in trade, Kenya is playing catch up with development projects.

• Chinese loan will give Kenya space to fund other projects. 

The Nairobi-Naivasha SGR
CHINA BELT AND ROAD INITIATIVE: The Nairobi-Naivasha SGR
Image: FILE

Africa as a whole has been held back by its infrastructural deficit. This is why as developed economies invest in trade opportunities, Kenya allocates a huge fraction of its budget to infrastructural development as it plays catch-up.

By committing funds to ports, roads and rail links, the Chinese Belt and Road Initiative is lessening the infrastructure burden for Kenya by giving her elbow room to direct budgets to other areas of development.

With the SGR estimated to cost Sh380 billion, we would have shelved many pressing projects if we were to dig into our pockets. The funds earmarked for the Belt and Road initiative will go a long way in bringing our infrastructure to par with developed economies thereby tipping the scales of international trade balance in our favour.

Nairobi