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Kenya

Economists warn on viability of railway project

“There is also the refurbishing of the railway network to the same gauge which would imply a far more substantial intervention raising the quality and operating speeds along much of the network. This solution is less expensive as greater investment is required but also relatively cost effective since it allows for re-use of materials,” he stated.

President Uhuru Kenyatta has stated that anyone dissatisfied with the Standard Gauge Railway tender award to a Chinese firm should give evidence before parliamentary committees investigating the matter.

In an address from State House, the Head of State said the Standard Gauge Railway line project must proceed because it was awarded procedurally.

President Kenyatta said for the country to achieve its development agenda, the process of implementing the project must be done in a transparent manner.

Nandi Hills MP Alfred Keter has charged that the tender was awarded before the government had done due diligence on the Chinese company.

The Head of State had said that the railway project is a vital part of the Government’s efforts to fully exploit the natural resources available in this region.

He said the project will reduce costs of doing business and make the East and Central Africa region far more competitive for investment.
In particular, President Kenyatta said, the Standard Gauge Railway will reduce freight transport tariff charges from their present average of US$0.20 per tonne-kilometre to about US$0.083 per tonne-kilometre.

It will also reduce transit time by freight trains from 30 hours on average to eight hours.

Apart from increasing rail transport share in the Northern Corridor and thereby reduce damage to the road network, the project is core to the attainment of Vision 2030.
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