Kenya is evidently making good progress on its section of SGR with the Nairobi-Naivasha section due for completion in mid-2019.
Last week, the Nairobi summit meeting for the Northern Corridor heads of state (Kenya, Uganda, and Rwanda) reviewed progress on the regional SGR project implementation. The joint objective remains to ultimately get the SGR to Kampala, Kigali and Juba through Uganda.
The spirit of the meeting and consensus is an indication that this regional infrastructure stands high chances of becoming a reality. But the caveat here is that Kenya must firstly take the rail line to Malaba border point, while Uganda concurrently commits design and funding for the SGR in Uganda.
Kenya is evidently making good progress on its section of SGR with the Nairobi-Naivasha section due for completion in mid-2019. By now Kenya has learned many lessons and gained experiences (technical, commercial, financing) which should make it easier and quicker to take the rail line to Malaba.
The regional SGR is apparently the main survivor of the original 2013 Coalition of the Willing (COW) list of regional infrastructure projects. These included oil infrastructure (pipelines and refinery) projects which are now being implemented differently and separately.
The SGR should therefore be prioritised as the single major regional project. It has significant common-denominator economic paybacks for all the northern corridor partners.
Specifically for Kenya, the SGR is a critical infrastructure of national strategic significance with numerous direct and indirect impacts on various socio-economic sectors.
A regional SGR will create a critical mass that will improve economies of scale, reduce unit costs and tariffs, while providing sufficient cash flows for debt re-payments. Increased volumes will also support the uptake of the increased port capacity and other logistics support services.
Should the SGR network expand to western parts of Uganda (Kasese, Pakwach, Arua) it will connect the eastern parts of DR Congo to Mombasa thus giving the SGR network an even wider regional cargo capture.
The ultimate success and glory of a regional SGR rests with the Port of Mombasa, which must have sufficient capacity, and efficient logistics and customs systems to induce the confidence of the regional partners to invest in their SGR networks. Mombasa port should never be their excuse for not supporting the regional SGR.
For those of us who witnessed the regional railway networks in action prior to the 1977 break-up of the EAC, we acknowledge the flawless logistics, connectivity and efficiency that come with a regional railway network. Further, getting long haul cargo onto rail systems is ultimately cheaper, quicker and decongests our regional highways making them safer and cheaper to maintain.
Concurrently, the government has been working on regional road inter-connectors where SGR will not pass. The ongoing upgrade of transport systems between Mombasa and the South Coast will provide an effective linkage with the north-eastern parts of Tanzania while the new Voi-Taveta highway now links Mombasa with the prosperous Moshi/Arusha regions of Tanzania.
There is also the already committed and funded Lamu/Isiolo LAPSSET corridor highway which will link the new Lamu port with the northern Kenya counties and ultimately with Ethiopia at Moyle. However to enhance viability and sustainability of the new Lamu port, the Isiolo-Lokichar section of the highway must be constructed.
The Isiolo-Lokichar section will facilitate a vital alternative export/import route for South Sudan to Lamu. Additionally, it will significantly transform the economies of the north-western counties (Isiolo, Laikipia, Samburu, Baringo, Turkana, Marsabit) while improving security management. Construction of this road is a national priority and its design and funding should be on top of the government “to-do” list.
The other transformational achievement by the government is the opening up of direct USA routes for Kenya Airways, a major effort that Kenya has worked on for a good many years. If the Nairobi -USA fares are sufficiently competitive, they will allow regional airlines to feed Kenya Airways with US bound passengers thus improving utilisation of JKIA.
The expansion and upgrade of national and transnational transportation infrastructure will always remain a key GDP growth enabler with socio-economic paybacks now and in the future. Project funding will invariably remain a major challenge requiring prudence in prioritization for maximum national benefits and impacts.
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