Why China refused to finance railway it initially backed - News Summed Up

Why China refused to finance railway it initially backed


The latest developments come as a slap in the face for Nairobi, which had appeared assured of clinching the Sh368 billion financing to extend the line to Kisumu. China refused to extend part of the funding as a grant and also wanted “sufficient proof of viability” before they could authorise the deal to construct the standard gauge railway beyond Naivasha. VIABILITYThe latest developments come as a slap in the face for Nairobi, which had appeared assured of clinching the Sh368 billion financing to extend the line to Kisumu. Kenyan officials had argued that the initial loss was to be expected as public awareness of the railway usage was still low. But the President’s delegation sought to downplay the criticism, arguing China was more important in other things as well.


Source: Daily Nation April 27, 2019 07:52 UTC



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