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K'ONYANGO: SGR linchpin for nation's growth, development

Kenya’s SGR has been a game-changer.

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by TONY MBALLA

Siasa29 September 2024 - 12:22
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In Summary


  • To advance intra-African trade and achieve tangible results, the countries that signed the SGR protocol must overcome their rivalries and work together.
  • Embracing the SGR for interconnectivity will drive regional economic growth and prosperity.
A Standard Gauge Railway freight train leaves the Port of Mombasa, carrying over 80 containers bound for Nairobi on September 10, 2023.

The agreement between President William Ruto and his Chinese counterpart Xi Jinping on the sidelines of the ninth Forum on China-Africa Cooperation to advance negotiations for the expansion of the Standard Gauge Railway to Malaba provides a significant boost to this pivotal regional project.

When Kenya, Uganda, Rwanda and South Sudan signed the SGR protocol in 2014, it was hailed as a major breakthrough for regional infrastructure.

This initiative, part of China’s Belt and Road Initiative, was designed to enhance trade efficiency through improved connectivity. Although internal competition among the signatories diluted the protocol's momentum, the recent agreement has revived this spirit.

With President Xi Jinping supporting the expansion of the SGR from Naivasha to Malaba, it is crucial for the countries involved to renew their commitment.

Economic sense dictates that no single country should advance while others lag behind.

Negotiations between Kenya and China regarding the financing for the SGR’s third and fourth phases are expected to conclude by the end of the year.

China's pledge of Sh6.5 trillion for Africa’s infrastructure projects over the next three years presents a golden opportunity for the countries involved in the SGR protocol to collaborate rather than pursue individual interests.

By working together and leveraging Beijing’s financial support, they can complete the project, boost economic growth and create jobs.

China’s commitment to addressing Africa’s infrastructure needs underscores its role as a key development partner, deepening its engagement with these nations.

The implementation of Chinese-backed projects has fostered mutual benefits, contributing to a shared future within the Sino-African framework.

Since its launch on December 1, 2017, Kenya’s SGR has been a game-changer, facilitating cargo transportation and enhancing people-to-people exchanges.

Numerous towns have emerged along the railway line, boosting trade and improving livelihoods.

The SGR has significantly improved efficiency, security and cargo volumes.

According to Kenya Railways, the SGR has achieved 2,437 days of safe operations since commercial freight began on January 1, 2018.

It has transported more than 12.124 million passengers and 2.554 million twenty-foot equivalent units, equivalent to 29.74 million tons of goods, across its 472-kilometre span.

China's role in transforming our transport and trade infrastructure is commendable, and its readiness to support SGR expansion presents an opportunity for Kenya to leverage this project for economic growth.

Even as we critique the project, we should focus on how it can be used to achieve greater economic prospects.

There has been significant debate about the secrecy surrounding the SGR contract, but it is the responsibility of our government, not Beijing, to make the contract public.

Any agreements made by the Kenyan government should adhere to the principles of the 2010 Constitution.

Blaming a foreign country for contract secrecy overlooks our own officials' failures to ensure public participation.

If there were issues with the previous SGR deal, responsibility lies with the negotiation team of that time, including then-Finance Minister Njeru Githae, then-Transport Minister John Michuki and then Cabinet Secretary for the National Treasury Henry Rotich.

As the current negotiations are set to conclude by December this year, National Treasury CS John Mbadi and his Transport counterpart Davis Chirchir must safeguard Kenya’s interests.

They should aim to build consensus that leads to a mutually beneficial outcome.

Recent statements from the FOCAC meeting in Beijing show that China is committed to not interfering in African countries' development paths, internal affairs, or imposing political conditions on its assistance.

China will not seek unilateral political gains from its investment and financing cooperation with Africa.

The Public Participation Act of 2018 mandates transparency and openness in decision-making processes.

This Act requires that public participation be integrated at all levels of government and that forums be conducted openly. If this fails, the responsibility lies with our officials' ability to negotiate, not Beijing.

Kenya is the entry point for the SGR, which extends from Lamu, Mombasa and Naivasha to Kisumu and Lake Victoria, ultimately reaching the Atlantic Ocean in West Africa.

However, Kenya cannot develop this project alone. About 30 per cent of cargo from Mombasa is in transit, with 85 per cent destined for Uganda.

Harmonising the SGR with regional efforts is essential for maximising benefits.

At the 11th Summit of the Northern Corridor Integration Projects in Nairobi on October 17, 2015, the Democratic Republic of Congo expressed its intention to join the SGR protocol.

With Kampala committed to constructing the Kampala-Malaba line, more collective efforts are needed to make the SGR vision of connecting the Indian Ocean to the Atlantic Ocean at Lobito, Angola, a reality.

For regional trade to flourish, the goals of the 2014 SGR protocol must be achieved. Kenya, as the gateway to East Africa, must extend the railway from its port city to Malaba for seamless trade.

The original SGR protocol allowed the Northern Corridor partners—Rwanda, Kenya, Uganda and South Sudan—to collaborate on financing, policies, project management and joint monitoring.

If fully implemented, the SGR project is expected to ease cargo transportation from Mombasa to Uganda, Rwanda, South Sudan and parts of the DRC, reducing costs associated with delays at the Port of Mombasa and stimulating economic growth within the corridor.

To advance intra-African trade and achieve tangible results, the countries that signed the SGR protocol must overcome their rivalries and work together.

Embracing the SGR for interconnectivity will drive regional economic growth and prosperity.

The writer is a journalist and communications consultant

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