Government generates Sh20bn from railway levy to finance SGR project

By Standard Reporter

Nairobi, Kenya: The Government has realised Sh20 billion through the railway development levy, which will be used to fund the construction of the standard gauge railway (SGR).

Transport and Infrastructure Cabinet Secretary Michael Kamau said this signaled a healthy revenue stream for successful implementation of SGR.

This emerged during discussions between Kamau and the President of China Communications and Construction Company Chen Fen Jian in Nairobi.

The CS said it is clear Kenya will be able to finance a portion of the railway development as agreed with China. He told Chen that there are no excuses to delay the implementation of the project now that the financing agreement was concluded during the visit by Chinese Premier Li Keqiang.

“Our two countries and indeed our two leaders have made a statement that as implementers, we should hit the road running and ensure the project is implemented as per the agreement,” said Kamau in a statement.

The Cabinet Secretary said the project is intended to not only transform transportation in the region, but also play a significant role in training and technology transfer, which will be crucial in future.

“As instructed by the leaderships of our two countries and stated in the agreement, we intend to develop these important projects through maximum use of local labour, materials and available expertise to ensure Kenyans reap the desired benefits from the project,” he said.

Chen said his company is determined to make the SGR project a model for future railway development in the region. He assured Kenyans that the project will be completed on time without compromising on quality. The two agreed on the need to ensure there is proper information flow to inform the public about SGR’s implementation.

Meanwhile, Kamau assured Chen that the issue surrounding the four-kilometre section of the Southern Bypass between Langata Road and Ole Serian Hotel is almost sorted out to allow for the completion of the bypass. The section borders Nairobi National Park.