Chinese Government Explains How Benefits of SGR Outweigh The Cost Incurred

The Government of China has urged Kenyans to stop crying foul over the cost of the Standard Gauge Railway (SGR) stating that the money had been invested in a project that would benefit Kenyans.

Chinese Vice Foreign Minister Zhang Ming stated that the size of the loans should not be an issue “since the money was put in a project that would benefit Kenyans”.

“When a debt is put in the right project, it is not a burden.

“The investment will give the money back since SGR is the largest infrastructural project in Kenya and it will lead to economic growth of the whole region which means that the debt will be paid.” Mr Ming's statement read in part.

The Vice Minister further noted that the end term effect of the SGR would be enormous and would help improve Kenya's economy and the overall growth of the other sectors through employment creation and effective transportation of goods and services.

“SGR is one of the major milestones Kenya has celebrated since independence.

“It is evident that the China-Kenya friendship has given Kenya another reason to celebrate and this reiterates the long friendship that these two great nations have achieved," he stated.

Mr Ming made the sentiments after the Opposition National Super Alliance (NASA) alleged that the government had inflated the cost of SGR and had put Kenyans into more foreign debts.

The Chinese Government financed Sh293.4 Billion of the Sh327 Billion spent on constructing the SGR and will also finance 90% of the Sh150 Billion Nairobi-Naivasha section.

Apart from the SGR loans, China is already the single-largest bilateral lender owed $3.5 billion (Sh361.6 billion), or 19.4 per cent of total external debt by end of the second quarter of the 2016/17 fiscal year.

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