Loan payment

Kenyans, the International Monetary Fund and experts have raised questions about the repayment status of the existing loans.

The terms of repayment have also been a subject of debate following revelations a few months ago that the port of Mombasa could be handed over to Chinese if Kenya defaults on the loans.

Mr Xuhang said the Mombasa-Nairobi railway earned $100 million in the 2017/18 financial year.

“The railway has created more than 50,000 jobs locally and boosted Kenya’s economic growth by 1.5 percent,” he said during the press briefing attended by officials of SGR management, the National Treasury, Ministry of Transport and Infrastructure and Kenya Railways Corporation.

The Chinese said Kenyans form a majority of the SGR managers and employees, and that their safety is guaranteed, “contrary to negative reports in the media”.

Jobs

They said 25 stations out of a total of 33 have already been handed over to well-trained local managers, and that Kenyans form the largest number of SGR employees at 2,723 against 828 from other countries.

“The Chinese government and people have been reading reports that Kenyans do not support the SGR and the loans. We’ve also seen reports that the loans are a debt trap and that the Chinese are venturing too much into Kenya,” Mr Xuhang said.

He said China and Kenya attach great importance to the railway, but admitted that people at the grassroots may have reservations about it.

“We have reached an agreement with the county government of Mombasa to conduct a study along the railway line. We want to talk to the people and get their views and suggestions on how to improve the SGR,” the envoy said.

China Road and Bridge Corporation external communications officer Zhao Yang said more Kenyans than foreigners are employed at the management and subordinate levels of the project.

“It is important that working conditions are improved to ensure that Kenyans are happy with the immediate and future benefits of SGR. It’s important that Kenyans own it. It will be very useful and popular once it reaches Kisumu,” he said.