Treasury cabinet secretary Mr Henry Rotich said in his 2017-18 budget statement on March 29 that $US 149m will be provided for the completion of the 472km Mombasa - Nairobi first phase and $US 577m for construction of the 120km Nairobi - Naivasha extension, which is the first part of the second phase of the SGR that will run to Malaba on Kenya-Uganda border. An additional $US 3.8m has been allocated for the relocation of people living along the route.

China’s Exim Bank will provide $US 1.5bn for the Nairobi - Naivasha section, representing 85% of the total cost of the project. The remaining 15% will be raised by the Kenyan government through the Railway Development Levy Fund.

Earlier, Kenya Railways Corporation managing director Mr Atanas Maina said the government is giving priority to the Nairobi - Naivasha stretch in order “to stimulate the economy and maximise returns from Phase 1 through the establishment of an Industrial Park in Naivasha.”

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