Turning Kenya into gateway to the Great Lakes

Kenya is betting on its partnership with China to realize its infrastructure modernization ambitions, according to a senior minister.

Speaking on the sidelines of a China-Africa media symposium in Mombasa from Aug 11 to 13, James Macharia, the Kenyan cabinet secretary of transport, infrastructure, housing and urban development, said China is helping his country to strengthen its position as a gateway and transport hub for East Africa and the Great Lakes region.

First on his list is the $3.3 billion Mombasa-Nairobi standard gauge railway. The route, currently served by a train running from Kenya to Uganda and roads, is expensive to use now, costing on average 45 percent of the price of goods and services compared with 15 percent elsewhere, according to the Kenyan government.

"Investment in this new railway will lead to realization of higher speeds and a reduction in transit times between destinations," Macharia says. "We expect it to be the transport artery connecting the port of Mombasa to Uganda, Rwanda, Burundi, Northern Tanzania, eastern Democratic Republic of Congo, South Sudan and Ethiopia."

A $2.94 billion loan from the Export Import Bank of China has funded 90 percent of the cost of the rail project. Furthermore, the bank has committed $1.5 billion to bankroll the second phase, which will run from Nairobi to Naivasha, a market town renowned for producing cut flowers for export.

Plans are also underway to build a special economic zone in the area that will be powered by the Olkaria geothermal power plant, which received a $93 million loan from China Exim Bank in 2010. The project will see an additional 140 megawatts of energy injected into the national grid.

The second phase of the railway, valued at $3.6 billion, will also extend to Kisumu and a port costing $140 million.

"We have to think about the inland port," Macharia explains. "A proper, modern and effective one will see the infrastructure feed into other economies such as Uganda and Rwanda, which share the Great Lakes region."

While agreeing that initial plans for developing the railway relied on the uptake of similar installations by Uganda and Rwanda, he says recent developments that have received a lackluster response for the two countries has forced Kenya to change track.

"By prioritizing the Kisumu port, I believe this plan will mitigate the risk that we face if (Uganda and Rwanda) do not take up their part," he explains.

Furthermore, the minister notes that Chinese projects have decongested the city of Nairobi, making it faster and easier for shipments from Mombasa to access landlocked countries.

The 28.6-kilometer southern bypass built by China Road and Bridge Corp is 95 percent complete and will be opened in the next five weeks, he says.

The northern (31 km) and eastern (39 km) bypasses are already in use. The Chinese government financed 85 percent of the $85 million project.

"What's missing is the western bypass," Macharia adds. "We have already inked a commercial agreement with a Chinese company that is currently negotiating finances from China Exim Bank. We want to complete the loop."

The minister also reveals that there are plans by China Civil Engineering Construction Corp Ltd to diversify and enter the booming housing sector.

Financing will be sourced from the China-Africa Development Fund, while a partnership with a local contractor will buoy supply of affordable houses to bridge the annual 200,000 housing units deficit.

lucymorangi@chinadaily.com.cn

(China Daily Africa Weekly 08/19/2016 page30)