Kenya’s $3.8 Billion Chinese-Built Railway Shows Why Belt and Road Is Being Reworked

The Chinese-built Standard Gauge Railway connecting Nairobi and Mombasa was supposed to provide an economic boost to Kenya. Instead, it’s become a case study in some of the problems China’s Belt and Road Initiative can create.

So is Xi Jinping’s ambitious global infrastructure expansion over, or is the BRI program only just getting started?

0:00 Kenya’s SGR was supposed to grow the country’s economy
00:38 China’s $3.6 billion loan, and a closed bidding process
02:24 Why Kenya’s SGR has struggled to pay for itself
04:36 So what does the future hold for China’s BRI and its transportation projects?

I'm George Downs, a WSJ video journalist fascinated by how technology is changing how we get from A to B. If you're interested in the future of mobility or how modern transportation can impact our lives– from EVs to eVTOLs, and beyond – then don't forget to subscribe.

#China #BRI #SGR

[GeorgeDownsWSJ]

Do you think China will continue to develop transportation infrastructure around the globe?

[JaimeWarlock]

I am an American living in Kenya. Benefits of the SGR go way beyond moving materials back and forth from Mombasa and Nairobi. A lot of people are using it now to commute between Nairobi and Mombasa since it is significantly faster than matatus. Once extended to Kisumu, it will open up potential for mining and farming in the interior hinterlands. Right now, huge amount of food comes from Tanzania mainly due to better infrastructure connecting it. Fish farming in Lake Victoria could become a thing with the right infrastructure to quickly transport from Kisumu to Mombasa and allowing to sell on the global market.

The SGR may not appear profitable from a direct revenue point of view, but it is accelerating all aspects of the economy. This will increase national tax income. It is not just about cargo fees.

[diyside]

I used to spend at least 8hrs on the bus at night going to Mombasa and it was always risky traveling on a two way highway full of trucks. Last year when my family and I visited home we used the SGR. Only $40 for first class, very good customer service with a lot of comfort and the travel time is half of what you would spend in the bus. Hopefully the project expands to other parts of the country. It has made life much easier.

[cynfulification]

As a Kenyan, the SGR has really helped saved time and money while traveling to Mombasa. Buses were always unsafe especially when they broke down. The problem with the railway project is that there is alot of corruption. Our Government want to have a big slice of the cake that is causing issues with the Chinese. I don't blame the Chinese....our government is just too greedy.

[ryanw]

In my country railways had always been operating at lose but are maintained by the government as part of public service due to the indirect economic value it provides as infrastructure.

[pkeiru]

To be fair the SGR has positively impacted the movement of passengers along the entire corridor from Msa to Nairobi and vice versa. It is a great alternative to the road.

[TheTororist]

my god, western media are still on this railway BS. us Kenyans love the railway, it has made life so much easier and cheaper. nobody expected the railway to be profitable at once, or even ever. theres other economic value it has unlocked

[williamleonard]

The creation of this property eventually allowed for exchange.

[ChefGeorge]

As a kenyan, all my friends are happy about this railway and we enjoy it. Nothing else matters.

[KelvinKim-desu]

Building large infrastructure is always a big risk for any Nation. However, building no infrastructure is a big failure. We shot our shot and we are growing with it here in Kenya.

[sreenathsurendran]

Building transportation is the first step of development.

[MrNeversweat]

It's not even 2 years since it was launched and our negationist friend living far away from Kenya knows more than us that the railway isn't not profitable.
It's not always about financial aspect but the chance to connect A, B to C and Unify the country, even in China some routes aren't profitable but they are essential

[MichelePonte]

Railways around the globe are meant to carry people and economy, therefore even if not profitable they still generate profit for the country.

[mathew]

This video doesn’t cover all sides of the story. The SGR project is meant to have long-term benefit, even if it doesn’t pay for itself in the short-term it still has major long-term economic benefits, especially as new markets and complimentary infrastructure is developed over time. This video also fails to mention the benefits provided to the people of Kenya by the passenger rail service of the SGR.

Maybe instead of trying to push a narrative of China Belt and Road world domination you should actually look at what these projects are accomplishing and how the people benefitting from these projects feel about them. Western countries could be doing much more to help Africa develop it’s infrastructure but instead they are trying to villainize China for providing the economic support they fail to give.

[tonglu]

Shortsightedness -- this is exactly why the US has such shitty infrastructure while printing money to fund meaningless market speculation. A railway is supposed to be used for decades. It'd be a miracle if it starts to be profitable in just a couple of years, even in a developed country. In fact many infrastructure projects are never profitable by themselves, because they don't profit directly from much of the economic value they create: it's not like a railway station or an airport can collect taxes on the businesses pop up around them. And lastly, as a Chinese national, I find it hilarious that nobody seems to understand the exceedingly simple business model of B&R. It's not an investment program. It's selling infrastructure via financing, just like how houses and cars are sold around the world.

[TheDd]

Irrespective of the view that China is putting countries into debt I think infrastructure development changes the economic prospects of locals much faster. The US has been exporting military hardware rather than focusing on infrastructure development across the globe. It just doesn’t work long term.

[hyuxion]

So if I understand correctly, WSJ did this video without interviewing any of the government from Kenya or China, and they got all the information from internet? Damn, is this how journalism being done nowadays?

[steventan]

The US has been claiming that the BRI is a debt trap and highlighted the woes of Sri Lanka as a typical example. But only 10% of Sri Lanka's debt is owed to China. The rest is owed to Japan and institutions in the west like IMF, World Bank

[peterkariuki]

In defense of the SGR railway ... It's has really improved transit btwn the 2 cities and was a huge success ...it may not have been profitable but you can't compare such huge infrastructure that will be there even after the debt had been paid .it's not always about profits it all about long term economic growth. Plus the Imf and world bank never invest their money in infrastructure .

Atleast people can see what they are paying for with the SGR .

[kolejny]

long term the rail line will no doubt be beneficial, it is early to judge, for cargo volumes logistics might be a problem but eventually it will be resolved. Kenya is a very populous country, Nairobi and Mombasa are very big cities, there is great distance and people inbetween them, it just cannot go wrong if it is well managed