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Kenya to terminate

railway at Kisumu after


Rwanda exit

A section of the standard gauge railway at Simba Station in Makueni County. PHOTO
| SALATON NJAU
IN SUMMARY
Transport Cabinet Secretary James Macharia played down the impact of Rwandas
exit even as he acknowledged that extension of the line to Malaba may no longer be
necessary if landlocked states opt out.
Rwanda last week announced plans to build a railway through Tanzania to the Indian
Ocean noting that the route is cheaper and would take shorter time to complete.
The government has already signed a commercial contract for phase 2C which will
run through Kisumu-Yala-Mumias to Malaba.

Kenya is mulling terminating the standard gauge railway (SGR) in


Naivasha or Kisumu after Rwanda pulled out of the flagship
infrastructure project on the Northern Corridor.
Transport Cabinet Secretary James Macharia played down the impact of
Rwandas exit even as he acknowledged that extension of the line to
Malaba may no longer be necessary if landlocked states opt out.
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
Mr Macharia.
Rwanda last week announced plans to build a railway through Tanzania
to the Indian Ocean noting that the route is cheaper and would take
shorter time to complete.
READ: Rwanda looks to Tanzania for rail transport as Uganda falters on
SGR
The countrys 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.
READ: Kenyas SGR project ahead of schedule
Kenya, Uganda, Rwanda and South Sudan have been keen on connecting
their economies via the fast-speed SGR running along the northern
corridor.
Speculation has been rife that China which is financing the Mombasa-
Nairobi section of the railway is keen on taking up the whole project.
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.
The Kenya Ports Authority sees an efficient railway link from Mombasa
as a sure way of reducing congestion and outcompeting 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 Rwandas decision would
have been costlier as a large part of it would be left hanging, said Mr
Macharia.
And 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 Ksh14 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.
ALSO READ: Building of railway terminal delayed as firm loses crucial
licence
Nairobi sees Rwandas last-minute withdrawal as a retreat from the initial
agreement between the three countries on the Northern Corridor signed in
2013.
A modern container port in Kisumu is likely to turn the lake-side town
into a hub for trade with neighbouring countries such as Tanzania and
Uganda and by extension Rwanda and Burundi as well as those in the
Great Lakes region.
For decades, Kisumu port registered robust business activity helped by a
reliable railway system and maritime vessels that ferried cargo to ports
such as Mwanza and Bukoba in Tanzania and Jinja and Port Bell in
Uganda.
Logistics firms are acquiring new trucks in anticipation of increased
business once the railway line is complete.
There will be increased demand for road transport for our customers
who are located inland, away from the Northern Corridor who will still
need our services. We are confident that the SGR is a partner and not a
threat to road transporters, said Mr Job Kemboi, general manager
Siginon Global Logistics.

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