NAIROBI, Kenya, Jun 8 – The ongoing Standard Gauge Railway is among the major gainers of this year’s budget allocation as it takes Sh154.4 billion.
National Treasury Cabinet Secretary Henry Rotich, while presenting the 2016/2017 budget estimates, said the government will contribute Sh36.2 billion of the amount with Sh118.2 billion being externally funded by the Chinese government.
“This rail will significantly reduce the cost of transport, facilitate faster and cheaper movement of freight and passengers and enhance competitiveness of the economy making Kenya a regional business growth,” Rotich said Wednesday.
The project’s first phase – connecting Nairobi to Mombasa at a distance of 609 KM- was first allocated Sh327 billion which was later increased to Sh420 billion.
Rotich also revealed that funding details of phase two of the project had already been concluded although he did not give any details.
At the same time, the government has also earmarked 3,800km of low volume seal roads in a bid to open up rural areas and farmlands around the country.
“The government will continue to enhance road network connectivity with the aim of enhancing trade, commerce, agricultural productivity and regional trade, hence the roads and farm lands.”
Additionally, the projects to expand major roads in a move to decongest Nairobi roads will continue during this new financial year.
These include the ongoing the dualling of the Outering Road and the recently started dualling of Ngong’ Road towards Adams Arcade which is expected to be completed in the next two years.
Rotich added that the government in partnership with the Nairobi County will be fast tracking the realization of the Nairobi metropolitan mass rapid transport system and the implementation of the Nairobi metropolitan transport authority bill.