Broke Kenya seeks Sh75bn loan from World Bank

[Nefertiti]

SGR is the sterling exemplar of poor choice. Gold medal caliber, I could switch gear to agric if you prefer. But on what do the imported steel or cement or iron ore transit? - same roads. On TOP of the highseas shipping cost. Nope, the lack of competitiveness has little to do with transit. Start by cutting down the unions - katiba manenos - tough luck. Tullow oil? any luck? On gasoline we are 100 years too late, the world is going green. We are just too incompetent you see.

You've a problem with SGR - something the Brits had no problem building it 1900. SGR is needed for big ticket stuff - like manufacturing - and mining. Those have ability to bring real FDI and real GDP. 89% of Kenya is semi arid and arid - there is so much we can with above ground (agricluture on really small portion of land that is getting smaller n smaller) - we need to find what is underneath the dry land that is kenya. We have iron ore in Kenya but without the railway - it cheaper to import steel from China. Our cement is expensive compared to global markets...because to transport raw materials & finished goods needed....without a railway is damn expensive...cheaper cement because of cheaper clinker..will translate into huge multiplier in construction and real estate....etc etc

[RV Pundit]

The roads are not good for bulk cargo. No serious mining or manufacturing will happen in the hinterland without good railway. Besides SGR is not really 'our' money but Chinese money until we repay it. China are not going to lend you 5B dollars to build roads. They will lend SGR as part of their belt and silk project - because they also need to move raw materials cheaply and fastly to china. The target obviously is DRC Congo with 24 trillion dollars worth of minerals.

The opportunity cost doesn't arise unless you can demonstrate that Kenya had 5B dollars to choose btw building a rail or something else.

And proper roads are also damn expensive...look at what American Betchel is proposing to do in Nairobi-Mombasa -3B dollars - the same cost for railway (3.8 or about with rolling stock).
https://www.businessdailyafrica.com/news/Sh300bn-Mombasa-mega-highway-to-bypass-Nairobi/539546-5058078-kv86am/index.html

SGR is the sterling exemplar of poor choice. Gold medal caliber, I could switch gear to agric if you prefer. But on what do the imported steel or cement or iron ore transit? - same roads. On TOP of the highseas shipping cost. Nope, the lack of competitiveness has little to do with transit. Start by cutting down the unions - katiba manenos - tough luck. Tullow oil? any luck? On gasoline we are 100 years too late, the world is going green. We are just too incompetent you see.