The much anticipated KSh 368 billion loan for the extension of the Standard Gauge Railway (SGR) project has not come through denting a huge blow to President Uhuru Kenyatta.
Transport Cabinet Secretary James Macharia confirmed on Friday, April 26 that the president did not sign the deal.
He, however, did not give reasons as to why the commercial Government-to-Government contract between Kenya Railways Corporation and China Communications Construction was not signed.
“No, we did not (sign the deal)," Macharia was quoted by the Standard.
The Transport CS noted government will now have to devise new favorable ways to raise funds for projects in the country.
Uhuru in the company of former prime minister Raila Odinga and other delegates had gone to seek the loan for the extension of the SGR from Naivasha to Kisumu inland port.
“I will be part of the delegation to accompany the President to the Asian country next week. The new SGR line will extend from Naivasha, Narok, Bomet, Sondu and finally Kisumu,” Raila said.
Prior report by TUKO.co.ke shows, the Cabinet approved construction of the second phase in 2017 after work on Phase One of the SGR between Mombasa and Nairobi started in 2013 and it consumed KSh 447.5 billion.
This is the second time Kenya is leaving China without credit.