Kenya: the most modern train in the country carries a debt to China.
Financed 90% by China, the railway connecting Mombasa to Nairobi remains at the center of debates in Kenya regarding the sustainability of public debt, several years after its inauguration.
The railway line, touted as the most modern in the country, reached a symbolic milestone by transporting 50 million tons of goods since its entry into service in 2017, according to the Chinese company responsible for its operation.
The announcement was made on Monday, July 27, by the official Chinese news agency Xinhua, as the Kenyan government continues to face significant pressure regarding the repayment of its loans.
The railway connects the port of Mombasa, the main entry point for goods in East Africa, to Nairobi, the capital. It is one of the flagship projects of Chinese investment in Kenyan infrastructure.
However, its funding, largely provided by Beijing, has raised concerns about the weight of the debt incurred by Kenya. Since the line opened, the project’s cost and financial conditions have been a regular subject of debate in the country.
The latest official figures show that this pressure is far from being alleviated. The commercial performance of the line, highlighted by its operator, comes at a time when Kenyan authorities are faced with the need to contain their public debt.
The transport of goods is one of the primary functions of this infrastructure, alongside the passenger service between Mombasa and Nairobi. The work was intended to modernize trade and streamline the transportation of products from the port to the interior of the country.
Comments
Comments load when you reach this section.