A modern railway line in East Africa is in the pipeline after Kenya and China signed a financial agreement committing the two countries to the Sh327 billion mega project.

President Uhuru Kenyatta and Chinese Premier Li Keqiang led regional heads of state in witnessing the signing ceremony at State House, Nairobi. The contract was signed by National Treasury Cabinet Secretary Henry Rotich and the Chinese minister of Commerce, Mr Gao Hucheng.

The standard gauge railway deal — which will lead to the construction of a 609-km railway line — will cost Sh327 billion. China will finance 85 per cent of the total cost through Export and Import (Exim) Bank of China while Kenya will pay the remaining 15 per cent through the railway levy charged on imported goods.

Source – TradeMark East Africa