The Government has not abandoned Standard Gauge Railway extension to Kisumu but will complete it at a cost set by the Chinese financier.

African Union envoy for infrastructure Raila Odinga with Cabinet Secretaries James Macharia (Transport), Peter Munya (Trade) and John Munyes (Petroleum) yesterday confirmed that the Sh380 billion project was still on course.

It will, however, cost the country excess of Sh8 billion to prove its feasibility in line with China Export-Import Bank prerequisites for a loan.

A Sh3 billion industrial park is among investments the Government is going to sink funds into to woo China into funding SGR extension to Kisumu.

The facility, whose completion is expected to signal economic viability for the SGR project, will sit on 1,000 acres, with 500 acres already identified in Muhoroni.

Its construction will begin with an official launch by President Uhuru Kenyatta, Uganda’s Yoweri Museveni and Democratic Republic of Congo’s Félix Tshisekedi in August, Raila said.

Munya said Sh500 million had been set aside for its design and planning in the current fiscal year and Sh2.5 billion in the year beginning July 1.

Speaking on the SGR issue for the first time since returning with President Uhuru Kenyatta from a trip to China, Raila said they did not fail to secure the loan in Beijing.

He explained that the project would go on once Kenya met a profitability caveat, which saw China freeze funding for the project beyond Naivasha.