The EastAfrican has learnt that the National Treasury is seeking a whopping Ksh94 billion ($940 million) in interest and principal instalments to pay off the Chinese government, Chinese Exim Bank and the China Development Bank before the end of this month.
According to Mr Ichung’wa the heavy investment in SGR, particularly the section between Nairobi and Naivasha is questionable in terms of its viability.
Kenya has been pushing for compulsory freight from Mombasa to Naivasha via the SGR to make it economically viable, a move that has put the country on to a collision course with some of its regional peers and truck drivers.
Early this month, the presidents of Kenya, Uganda, Rwanda and South Sudan agreed vide a virtual meeting that all goods imported through Kenya with final destinations being neighbouring landlocked countries be transported on the SGR from Mombasa to Naivasha Inland Container deport.
Kenya completed its initial phase of the 487 km SGR line from Mombasa to Nairobi at a cost of $3.8 billion with the bulk of the loan secured from the Chinese Exim Bank in May 2014 with a grace period of five years and repayment period of 15 years.
