China’s infrastructure investments in Africa continue, with the latest reported to be a new standard gauge railway line between Mombasa and Nairobi. Apparently the new line is intended to be the first phase of a new network through Kenya serving Uganda, Rwanda and Burundi. The latter three countries will be particularly interested, because at present their imports come largely by road through Kenya.
Uganda’s imports were largely stopped during the post-election violence in Kenya in 2008, and since then Uganda has been actively seeking alternative supply arrangements. There are advanced plans for building a railway line between Tanga on Tanzania’s coast just south of the Kenyan border to Musoma in Tanzania, which is on Lake Victoria. This would enable imports for Uganda to be routed via rail from the Tanzanian coast to Musoma, and thence by ferry to Uganda.
Kenya’s new railway line between Mombasa and Nairobi will be constructed by China Roads and Bridges Company, and will be financed under a Chinese contractor-negotiated loan. The deal, which reportedly already has been signed by the Kenya Railways Corporation, specifies that the KRC will deal only with the Chinese company. The construction costs might ultimately be financed in part by a levy on petroleum.