According to eTurboNews, Kenya has finalised a $3.8 billion loan deal which will see a Chinese construction company begin work in earnest on the new standard gauge railway line connecting the port of Mombasa with the capital, Nairobi.
Additional funds are being sourced locally through a Railway Development Levy on all imports coming through Mombasa. In a draft budget preview, the Kenyan government has injected over $2.2 million into the project for the 2014/15 financial year.
Out of the total loan of $3.8 billion, about two thirds will be dedicated to the construction of the new line, while the remaining funds will pay for rolling stock and locomotives, all made in China.
The new railway will not just be significant for the transportation of cargo, imports and exports, but will also offer a safe and fast alternative to road transport for passengers.