Kenya is considering terminating the Standard Gauge Railway (SGR) in Naivasha or Kisumu after Rwanda pulled out of the flagship infrastructure project on the Northern Corridor.
“The decision has not been reached but we have a number of options at our disposal. We can decide to end the SGR at Naivasha or Kisumu but it will still be a viable venture due to the presence of Lake Victoria,” said Transport Cabinet Secretary James Macharia.
Rwanda announced plans to build a railway through Tanzania to the Indian Ocean citing the route to be cheaper and that it would take shorter time to complete. The country’s last-minute pullout from the SGR came as a surprise to Kenya which has build almost 80 per cent of the first phase running from Mombasa to Nairobi.
Kenya, Uganda, Rwanda and South Sudan have been keen on connecting their economies via the fast-speed SGR running along the northern corridor.
Uganda, which is the top transit destination of Mombasa port cargo, has not build even as single inch of its section of SGR, putting pressure on Rwanda instead.
Speculation has been rife that China, which is financing the Mombasa-Nairobi section of the railway, is keen on taking up the whole project.
The Kenya Ports Authority sees an efficient railway link from Mombasa as a sure way of reducing congestion and pushing out competition from the Port of Dar-es-Salaam in the race to control cargo destined to Rwanda, Burundi, the DRC and South Sudan.
On Tuesday, Mr Macharia said Kenya was on the right footing, having previously changed its SGR route design to run through Naivasha and Narok. Had it used the northern route to Malaba, then Rwanda’s decision would have been costlier as a large part of it would be left hanging, said Mr Macharia.
Should Kenya opt to extend the SGR to Kisumu, Mr Macharia added, it would still be viable because cargo will be transported over the lake to other East African states, making the SGR a viable economic project.
The government has already signed a commercial contract for phase 2C which will run through Kisumu-Yala-Mumias to Malaba.
China Roads and Bridges Company (CRBC) is scheduled to build a modern Sh14 billion port in Kisumu which will be useful in connecting the rest of EAC states through Lake Victoria giving Kenya an edge in the maritime business in the region.