UK withholds Ksh 18B (£100 million) funding for Nairobi Railway project over tender row
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The British Government-backed UK Export Finance (UKEF) has delayed a £100m ($121.9m) payment for the development of Nairobi Railway City in Kenya
The British Government-backed UK Export Finance (UKEF) has delayed a £100m ($121.9m) payment for the development of Nairobi Railway City in Kenya.
According to reports, UK government to the decision afterthe Kenyan government failed to award contracts to contractors to start the construction of the project.
“The £100m for the urban development project, hoped to rejuvenate the area around Nairobi’s Central Railway station, accounts for approximately half of the total funding for phase one,” the Africa Report wrote.
This is UK’s largest investment in Kenya since Brexit aiming to reduce congestion in the Central Business District while creating employment.
The £100m for the urban development project, hoped to rejuvenate the area around Nairobi’s Central Railway station, accounts for approximately half of the total funding for phase one.
The Nairobi Railway City is an iconic multi-modal urban development situated within 425 acres between Haile Sellasie Avenue, Uhuru Highway, Landhies Road and Bunyala Road.
Last year, the Kenyan government released the master plan of the proposed Nairobi Railway City, which seeks to expand and decongest the Central Business District.
It involves constructing a green city with office blocks, shopping malls, and a light industrial hub on Kenya Railways land.
The grand plan includes economic zones hosting cutting-edge industries and small and medium-sized enterprises, expected to create more than 200,000 jobs.
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While the project’s blueprint was conceived during former President Uhuru Kenyatta’s administration, it was officially launched last year, with an estimated total cost of Ksh28 billion.
Despite the initial plan to commence last year, the project has faced delays, with the construction process yet to begin.
This venture is part of a larger initiative, involving six projects with a cumulative worth of KES 500 billion, fast-tracked under a UK pact signed between President William Ruto and PM Sunak in 2022.
According to Kenya Railways, the project was poised to regenerate the area around Nairobi Central Railway Station into a modern Railway City, provide a Livable and Sustainable Urban Space and create a Transit Oriented Development (ToD) to support Ridership for the Nairobi Commuter Rail.
It would also create a Transport Hub with Multi-modal Transport Facilities, expand the Nairobi CBD to the South as well as provide an Iconic development to position Nairobi as a leading World City
Currently, the fate of the Nairobi Railways City Project now remains uncertain as the funding delay puts a question mark on its progress and implementation.
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