Debt Trap or Strategic Infrastructure? The Extension of Kenya’s SGR to Uganda

In the absence of Chinese loans, the Kenyan and Ugandan governments have sought an alternative financing model for the Standard Gauge Railway (SGR). This demonstrates their commitment to the railway as a strategic regional infrastructure project.

Launching Kisumu-Malaba SGR Line

Suspension of BRI Loans and a 6-Year Hiatus in SGR Construction

The Chinese BRI initiative in Africa saw the Asian economic giant funding large infrastructure projects, including over 600 kilometers of SGR linking Mombasa to the capital, Nairobi, before extending further to Naivasha in 2019. However, Western think tanks would launch smear campaigns, terming China’s infrastructure loans as a ploy to entrap African countries with debt and, in turn, turn the debt into leverage. The observation that some of the projects exceeded budget projections was used to support this narrative while selectively concealing the reality that some corrupt Kenyans had manipulated procurement to steal some of the money. The cost overruns observed, coupled with negative reviews from Western spin masters, created a lingering possibility that some African leaders may decline to repay Chinese loans. These fears may have contributed to the Asian nation’s suspension of the issuance of some large infrastructure loans to some African countries, which led to the........

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