September, Thursday 19, 2024

The Ineffectiveness of China's Belt and Road Initiative: Kenya's Unproductive Railway Project


dWGW4tM43RpV8zn.png

The Chinese-built railway in Kenya, known as the Standard Gauge Railway (SGR), has faced setbacks in its plan to connect to other landlocked countries in East Africa. While the passenger side of the business is successful, the cargo side has not been able to generate enough revenue to repay the loans taken for the project. Currently, the railway only reaches the town of Naivasha and most freight trains return to the port city of Mombasa empty. The Kenyan government is seeking additional funding options to complete the project but faces concerns over the country's growing debt and its reliance on China. The opacity of the deals with China and the lack of transparency in loan terms have raised concerns among citizens and critics. The future of China's Belt and Road Initiative in Africa has become a topic of debate as funding from China has diminished and African countries grapple with mounting debt. Kenya's railway project is a testament to the challenges faced by countries in balancing economic development with debt sustainability.