Sh17bn for 16km road raises queries about Chinese loans
Road construction workers put final touches on a section of the 10 kilometre tarmac road in Maralal town on January 19, 2016. Outering Road will cost Sh11.2 billion. PHOTO | JOHNSTON KETI | NATION MEDIA GROUP
The government, which has come under pressure over claims of inflation in the project, argues that the variation in cost is because of the depreciation of the shilling.
The variation in cost increases further if you compare the new road with the 39km eastern and 31km northern bypasses which despite being funded by the Chinese Exim Bank just like the Western bypass, were both constructed at Sh8.5 billion, raising more questions.
How the deal signed between Kenya and China for the construction of the 16.5km Western Bypass that ended up costing Sh17.3 billion has again put the government on the spot on its appetite for Chinese infrastructure loans, which experts say are overpriced.
The signing of the deal on Monday came just a month after the World Bank and International Monetary Fund (IMF) warned the country against its huge uptake of Chinese loans as they risk choking the economy with a huge repayment burden.
