Details have emerged about the difficult conditions that made it impossible for Kenya to secure the funding for the second phase of the SGR.
President Uhuru Kenyatta and AU Envoy for Infrastructure H.E Raila Odinga had travelled to China and appeared assured of clinching the Ksh368 billion financing to extend the line to Kisumu.
However, according to reports by Nation, China did not agree with the terms of the loan that Uhuru was proposing.
Reports indicate that Uhuru had asked for half of the money to be given as a grant and the balance be in a loan with more relaxed conditions.
China, on the other hand, insisted on collateral, something Uhuru had gone to Beijing to avoid.
They wanted “sufficient proof of viability” before they could authorise the deal to construct the standard gauge railway beyond Naivasha.
Traditionally, the Chinese have used grants and interest-free loans to rope in least developed countries through its Belt and Road Initiative.
On Friday, Transport CS James Macharia stated that the SGR, which has reached Naivasha, will now be linked to the old line to ensure there is no disruption in transportation.
The change of mind back to the old line signals a reality check for government officials who spent the last five years fighting back criticism on the cost of the line.
Nonetheless, Kenya signed three infrastructure financing deals worth Ksh226 billion and were made through concessional financing and public-private-partnership (PPP).
They include the construction of the Waiyaki Way-Jomo Kenyatta International Airport Expressway, the expansion of the Northern bypass, as well as the construction and maintenance of the Konza data centre and smart cities project.
It is however, worth to note that the SGR project has already reached Bomet, heading to Kisumu.