Businessman Wanjigi slams President Ruto's SGR agreement with China

Businessman and politician Jimi Wanjigi has strongly criticised the new deal signed by President William Ruto during his recent state visit to China.

The agreement paves the way for the expansion of the Standard Gauge Railway (SGR), extending it from Naivasha to Kisumu and Malaba.

The deal also includes the development of a new Kisumu Port, with the entire package of projects estimated to cost Sh17.8 billion.

During an interview on Spice FM on Monday, Wanjigi raised concerns about the economic feasibility of the project. He pointed out that Kenya is still grappling with the debt incurred from previous phases of the SGR.

"We are extending it to where? Do we have goods to transport on the SGR? How many people are using that railway? I believe as a country we have other pressing priorities," Wanjigi said.

He highlighted that Kenya is still facing challenges related to loans from China’s Exim Bank, which financed the Mombasa-Naivasha segment of the railway.

Wanjigi noted that the original budget for the project was set at Sh55 billion, but the cost ultimately surged to Sh1.1 trillion.

"Kenya Railways was meant to be a shareholder by providing land, while the government and private investors would partner to build the railway and procure wagons," he explained.

The newly introduced Phase 2B extension of the SGR will cover a distance of 262.3 kilometers, including an additional 8.9-kilometer branch line that will connect to the planned Kisumu Port.

The agreement encompasses civil works along with the acquisition of 35 locomotives, 724 freight wagons, and 64 passenger coaches.

Wanjigi later claimed that government officials modified the initial project blueprint, dividing it into two stages. The first phase focused on building the railway from Nairobi to Naivasha, with an eye-watering price tag of Sh500 billion.

The Chinese agreed to cover 90 percent of the project’s costs, totaling Sh450 billion, with Kenya responsible for the remaining Sh50 billion, according to Wanjigi.

However, he pointed out that what was initially planned as a Sh55 billion private-sector project eventually burdened Kenyan taxpayers with a staggering Sh1.1 trillion bill.

"We ended up contributing far more than necessary. We could have constructed the railway on our own," he expressed with regret.