Kenya will need the backing of China to issue a 15-year bond of Sh390 billion for the extension of the standard gauge railway (SGR) from Naivasha to Malaba.
Treasury Cabinet Secretary John Mbadi said Kenya has opened talks with the China Exim Bank to drop a clause in a loan agreement that demands proceeds from the rail development levy be used to pay the debt used to build the Mombasa-Naivasha line.
