PRESIDENT Uhuru Kenyatta of Kenya officially launched the construction of the 120km Phase 2A of the 489km standard-gauge railway linking Mombasa with the Ugandan border [on October 20, 2016].
Designs for the second phase, which will run from Nairobi to Naivasha, were approved by the government earlier this year which later signed an engineering, procurement and construction (EPC) contract with China Communications Construction Company.
Kenya Railways Corporation says the Nairobi – Naivasha section will stimulate the economy and maximise returns from Phase 1 from Mombasa to Nairobi, the civil works of which are now 80% complete, through the establishment of an industrial park in Naivasha.
Kenya has signed a $US 1.5bn deal with the Export/Import Bank of China to finance 85% of the total project cost. The remaining 15% will be provided by the government of Kenya through the Railway Development Levy Fund.