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?
To learn more about how Chinese officials are overhauling the Belt and Road Initiative to make it more economically sustainable, watch Shelby's full video here: • How China Plans to Sal...
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?

[@VedantinKK]

Oh yeah, definitely. Until the US, EU, Japan, Australia, and other European democracies steps in to help countries in need of infrastructure - China will continue to occupy the vacuum.

[@FundiWaStima]

The award of the contract was corrupt. The team of experts that did the feasibility studies were overruled by politicians. The project was known not to be feasible from the onset. The price was also inflated. Moreover, the technical team was blindsided by the award of the project to the chinese. The feasible option had been to refurbish the existing railway, at a fraction of the cost.

[@devendrajat143]

Yes

[@sbkarajan]

China building roads, rails, ports, and power plants are far better than the US transporting drugs and arms, laundering dirty money in the same developing countries, and also stealing their oil. In addition, weren't the US accusing China of having some ulterior motive for doing all these good things that the US has never done? Like expansion of Chinese military base? Now that turns out to be a lie, and then what, Chinese project did not make any economic sense? You mainstream media should be ashamed of yourselves, nothing but lies and lies and more lies.

[@dywang32]

Why don't you ask Kenyans whether they rather have a railway or no railway?

[@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.

[@johnsoncao3114]

Exactly.1. Basic infrastructure may not payback by ticket selling as it's pricing has to be beneficial to more coverage of ppl; 2. Brings more management skills and educational insights to ppl who have chance to use advanced tech.

[@ksandhoff1]

yeah tell that to the Chinese banks !

[@ericmosioma6319]

Your english betrays you as 'Kenyan' English not 'American living in Kenya' english, you imposter

[@thaivang]

Lol...

[@Littlelamb2023]

I’ll check back in ten years to see if ya right 🤔

[@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.

[@VarunRamamurthy_DrDude]

It has made life easier but your country will soon fall because of this

[@TheJohn222222]

the important question is cost of project . similar projects in india are completed under 2 billion usd . chinese companies obviously made huge profits .

[@stopiwantoff7965]

Kenya has put their foot in Chinese bucket.🤔

[@diyside]

@@TheJohn222222 I think over time the project will pray for itself. But was the cost inflated? Most likely yes. The deal was very shady I'm sure someone pocketed money out of it

[@diyside]

@@stopiwantoff7965 yes and not only Kenya but very many African countries.

[@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.

[@musqul8566]

Hi China bot.

[@theTHwa3tes11]

@@musqul8566 That ain't a bot.

[@prasenjittripura4691]

china rs2 ywan social credited

[@TheHol8]

Yeah, it may be true, but I personally feel the return of investment is bleak. Kenya will have to pay for that just like China owns Sri Lanka and Pakistan ports, be careful. Its high time the African countries should stand on their own feet and let go of the tribalistic mentality.

[@wh2960]

@@musqul8566 jump on a highway yankee

[@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.

[@elimlinrr6898]

It will improve Kenya's export sector. I just bought some Kenyan avocados from a supermarket here in Malaysia. Much cheaper than those imported from Australia.

[@drdewott9154]

Yeah. Another big problem could be killing off a big project prematurely. The SGR phase 1 is just phase 1 after all, its a shell of what its likely to be if more phases are greenlit and opened, or the whole system as planned. Phase 1 largely just connects 2 locations, but with extensions new possible trips for cargo and passengers can become viable, helping grow the economic development in many parts of the country, which in turn improves the SGR's business case. It's like induced demand.

[@KelvinKim-desu]

@@drdewott9154 thankfully it seems like the current government is still committed to finishing the project. This is one of those projects whose true benefits will be realized when it is complete. That link across Kenya's major cities as well as import and export portals is critical. Once the link is complete this will be a breakthrough for the entire region. I'm also happy to see that Tanzania has made a lot of progress on their side. When the two tracks are linked we will have a circuit that will feed generations of east Africans for centuries. Despite the short term challenges, we need to think of our future and that of our descendants.

[@hk254lyt8]

@@elimlinrr6898how do our kenyan avocados taste?😂

[@joputhiyaparambil07]

I'm an Indian who enjoys little failure in China, so don't cancel me by claiming I'm a Chinese bot. I have a few points to say. 1. It's a fairly new railway line, don't expect a new railway line to utilise 100% from day one. It'll take years to build infrastructure and logistics networks around the new railway lines. Only after that, its full potential will be achieved. 2. As your video mentioned there is a possible future expansion of this line. Railway line extension will exponentially increase the potential. 3. Since the rail can transfer goods faster and more efficiently compared to the roads, there will be indirect money savings. That also helps Kenya's economy and its people. What I am trying to say is, you western media are too eager to see China's failure and too early to declare it. As an American, you might have issues understanding how beneficial is a railway. But as an Indian, that's one of the few things we understand as a country. Do some more research before your next video.

[@HTV-2_Hypersonic_Glide_Vehicle]

You shouldn't be too worried about random people calling you a Chinese butter, a bot of any sort if you're just an honest human. A bunch of dumbasses behind a screen are something you shouldn't be afraid of when they think that you're just a bot.

[@adrianooliveira9144]

Excellent man! Those people from the "first world" think they are the only one who deserve a comfortable and modern transportation. Besides the fact they are scared to death about Chinese power

[@jyc313]

It’s less about the efficacy of the railroad. Sure, it could be effective and very popular eventually.. only time will tell. But 5 years later, it’s operating at an enormous loss - they’re starting off negative even if over the course of the railroad’s useful lifetime they can make that back. But this is more about the financial position Kenya is faced with and the advantages China has by lending. China like other nations doesn’t do anything if it doesn’t give them a particular advantage

[@-whatever-]

Nah, Mallu commies with sympathies for the CCP can't play the 'I'm Indian card'

[@joputhiyaparambil07]

@@-whatever- Try something smart next time. 🤦🏽‍♂️

[@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

[@heartbeat8960]

You are right , The economic momentum that a railway can drive far exceeds the railway itself .

[@Plaufin]

I think they are mot assesing how useful it is, they are just saying its not profitable and how does the country face that debt+losses

[@BoatLoadsofDope]

America was build on rails. It seems like they have forgotten that.

[@trolllovindaddy]

Funny this is exactly what ari Lanka said as well 🤔

[@sangteazadeng2064]

@@trolllovindaddy really? Sri Lanka debt to china is around 10% of total debt Sri Lanka. 80/90% of their debt comes from western company and IMF and you guys still have audacity to blame china

[@williamleonard2242]

The creation of this property eventually allowed for exchange.

[@ebonicalbert5711]

Welcome to the U.S. where our motto is; "come back when you are a little more richer."

[@thomasnorris7285]

This is the most intelligent word's I've heard.

[@thomasnorris7285]

Most times it amazes me greatly the way I move from an average lifestyle to earning over 63k per month, utter shock is the word. have understood a lot in the past few years to doubt that opportunities abound in the financial markets, The only thing is to know where to focus.

[@ebonicalbert5711]

@@thomasnorris7285 Wow buddy, that's more than a mouthful of profits you're making. How do you achieve this feat consistently? You must be a genius in trading.

[@thomasnorris7285]

@@ebonicalbert5711 Anyways not actually, what I know about trading almost borders on zilch lol. I make huge profits on my investment since I started trading with Mrs Debbie Ramirez, her trading strategies are top notch coupled with the little commission she charges on her trade.

[@cjoo407]

Kenya should be proud to have new rail transportation. Profits will return in due time. No needs to worry much. 💪🏻

[@luisf2793]

Mate it’s 3 billion dollars Worry at least a little

[@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.

[@AMGW11]

I don't use road anymore to travel to the Coast, there are just way too many stupid people behind the wheels of road vehicles. I can't gamble my life on long distance road travel, especially in our part of the world. Carnages every single day costing lots of human lives.

[@pietrojenkins6901]

@@AMGW11 passenger traffic never makes money for railways anywhere in the world.Freight of cargo is the real $$$ maker.

[@pkeiru]

@@pietrojenkins6901 and maybe with more time to grow industries locally it will be put to work ferrying exports to MSA as it does imports into the hinter land. But to travel on Kenyan roads is to understand the cost on lives that has been brought about the lack of law enforcement on these roads.

[@francescoaiazzone]

@@pietrojenkins6901 high speed trains in Europe make money. Commuter services don't, but that's by design. Still, freight transport must be moved back to the rails.

[@_aponak4716]

WSJ journalism Job are report or spread fake new..

[@elkiq95]

Western propaganda. The SGR will pay itself. It's just hard times due to Covid and Ukraine war plus drought. The Railway is a great success.

[@MichelePonte]

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

[@kateciku1229]

You can say whatever you want but the SGR is the best thing that ever happened to us Kenyan commuters

[@sreenathsurendran853]

Building transportation is the first step of development.

[@robertgittings8662]

My only question is why are the white guys so "keenly" interested 🤭 after looting the continents for centuries sold its people, I think they are definitely "genuinely concerned" out African people right?

[@somethingelse9535]

No it isnt. No expensive transport no one can afford to use.

[@chad-lad]

First step of development is development of its human resource, look at Rwanda

[@lesliegrace8360]

Do you see transportation in no man’s land? Demand vs Supply

[@cumsquatch8057]

@@somethingelse9535 the trains in Kenya are affordable.

[@mathew3103]

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.

[@danielch6662]

Build giant infrastructure, the economy does not immediately jump up 5000% within 12 months to take up 100% of the built capacity. Why do we pretend to be surprised by this. This is stupid. Demand will grow. Because economies don't grow instantly. It will ramp up.

[@BrightWendigo]

Any wealth that pops up will be sucked from the surrounding local communities. You should listen to America, we are smarter then china

[@coolhippies1533]

The problem with these economic assistance however are the contracts China offers. What benefit do these projects give if the countries default on the loans and China regains control of the infrastructure? Many countries inevitably end up paying huge loans for nothing.

[@user-gc1hg9sp9k]

@@coolhippies1533 it still far more better than default on IMF debt, if your default on IMF debt your country are force to cut spending and privatize many of state industry. And even IMF could potentially influenced the country politic. And most of those IMF loan are end up on the corrupt politician, and leaving nothing to ordinary citizens Chinese loan on the other hand still give you an infrastructure that ordinary citizen could use and benefit from it

[@gunsumwong3948]

I believe every Kenya is proud of having this SGR. It is their railway. They now has a rail industry employing thousands of people. There have been a lot of videos on young Kenya girls trained to be SGR drivers or engineers and technicians. China is the main lender who may lose money but Kenya always wins. The funny thing is I think China doesn't mind at all because it has donated hospitals, schools, university, sport stadiums, parks, Africa Union HQ building and CDC to the African nations. China is there to share future together.

[@ryanw531]

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.

[@skp8748]

Exactly I can't believe what this is about... Every single govt infrastructure project is built on loans our taxes are just collateral for govt to get the loans... How much does HS2 cost? In what world can they ever be repaid by train fares. That wasn't paid for using cash UK took out loans to pay for it. When Italy gets billion from the ECB to build a trainline... No one is imagining train fares will pay for it but that the economic growth resulting from linking cities or shortening travel time alongside the improvement in quality of life for citizens over the lifespan of the train is worth it. Who on earth expects a train line to make $200m in a year. As for Kenya not being able to service annual repayments 😂 China is an export nation all you need to do is offer them greater access to market which offsets the repayment. Will your trade deficit increase with China yes but I can't name a single country on earth that has a positive trade balance with China..

[@360decrees2]

It often takes a long time for projects like this to pay off. And from what some of the other commenters have shared, it appears to have yielded serendipitous benefits that may improve local life and the economy overall. Lacking knowledge of the history of great projects, I couldn't say how long it took for the Hoover and Aswan Dams or the Brooklyn or Golden Gate Bridges to 'pay off'.

[@physiocrat7143]

Land values go up.

[@steventan2550]

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

[@AGP335]

The debt-trap narrative is indeed false; however, China did undeniably contribute to the Sri Lankan crisis more than other international lenders. This was not out of malice as some suggest, and China should not be villanised for this, but it was rather out of lack of scrutiny - they approved massive loans for extremely short-sighted and sometimes straight up corrupt projects in Sri Lanka, such as those in the former President's home province, including a massive container port, international airport and stadium, which have all been pitifully underused since completion. It was evil of the Rajapaksa family to be so corrupt, and they are the ones to villanise for this. However it was also clearly irresponsible of China to lend out their own bank's money and bring a developing country under a higher debt burden for the sake of extremely silly projects.

[@Aman_Bhau]

@@AGP335 china contributed? Lol what world are you living in?

[@SeattlePioneer]

[@vengeance5322]

Japan is also 10%, world bank also about 10%. Almost half is market borrowing where the sate issues bonds etc to borrow. Chinese loans are offered at very high interest rates and impossible conditions, stop fooling people mister Steven🙄

[@irvanabidin7440]

​@@vengeance5322 delusional

[@tonglu3699]

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.

[@HTV-2_Hypersonic_Glide_Vehicle]

Shortsightedness is not the only thing. You forget about many other things. Who will use it. Who will pay for it. Who will build it. How much it will cost. How safe it will be. How it will benefit society. What will the reaction by the public be after the first year of service. Many many factors. Also will the government allow for it. Checks and balances are supposed to help the citizens of the United States, but the Senate in the federal government really causes the lack of progress for the United States because the United States has been so divided since the '90s.

[@HTV-2_Hypersonic_Glide_Vehicle]

When you rely on one group of the federal government to decide whether or not a project gets the green light or not, and that one group is divided in and of itself filled with people with their own self-interests that disagree or that don't understand that have the ability to cancel any given project or proposal, that's why the United States is so far behind.

[@HTV-2_Hypersonic_Glide_Vehicle]

The 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." Though it's not an investment program, the Chinese government does expect big returns of benefits after the B&R is complete. One thing that they expect is more money for energy or ease of access for energy to be brought inside the country. Easier trade more trade with countries that are connected to China via Belt and road. And also legislative influence and power through relations with the belt and road. Countries that have shaken hands with Chinese officials that agree to allow China to help their country will be more likely to vote alongside what China believes. Which can have a huge impact in the future.

[@mathew3103]

Really well said, the economics of infrastructure is different from other kinds of business investment. This video does not tackle the long-term benefits of the project. There was also no mention in this video of the passenger rail services provided by the SGR which have been very helpful to Kenyans

[@AW-tc4hy]

Good point. The infrastructure actually contributes to overall growth

[@TheGameTrainzHD]

Insightful. I hope all turns out well for these projects. It’d be nice to see East Africa prosper even more.

[@ericciaramella1984]

Belt and road is a scam to extract resources. Why is it that kenya and every other country is contractually obligated that chinese companies build the projects using Chinese workers. No African employees. So no benefit to local economies. These projects are rarely ever used just like homes and apartments in China itself. $200M loss per year is just the start. Just wait until it has to be repaired by Kenyans who didn't build it and who don't work on it. It becomes a 3 billion dollar piece of trash then.

[@dudeimstoned5141]

Are you guys blind? The project is making 200m$ loss per year. Project is made with Chinese items, Chinese loans and Chinese workers. And Kenyans paying interests to china as well as paying up losses. No idea why Africans getting trapped to china even after they saw situation in srilanka, pakistan...

[@richardarriaga6271]

A no-bid contract? Those go over well 🙃

[@sepg5084]

@@richardarriaga6271 even if it was a no bid contract, the railway is already built though and is already functional. Even if there was bidding, that won't suddenly increase the amount of freight that will use the railway service.

[@cooper1819]

@@richardarriaga6271 Was the price inflated? How much would others charge to build similar railway? How much from Americans or Europeans or Japanese, Koreans? Maybe the Chinese were too low for others to make money.

[@thetooginator153]

This story would be more interesting if it mentioned how much cargo needs to be transported to the coast from Nairobi, and whether any company could have built a railroad of the same quality for less.

[@TohaBgood2]

They did. There’s literally a graph that shows that they are currently transporting about 1/10th of the cargo they need to be hauling. And “quality” is not exactly something that Chinese construction is known for. You can see the leaning skyscrapers and falling viaducts and buildings that Chinese construction companies have built both inside China and internationally. It would be trivial to match that level of “quality”.

[@dgthe3]

@@TohaBgood2 That's not quite what he was getting at. He was asking how much cargo, by every means, goes along that route. If you need to send 90% of it by rail for the rail line to be profitable, it probably isn't going to work out. But if it's only 10%, that's achievable. That being said, I'd be willing to bet that China was never overly concerned with whether or not the line makes money.

[@thetooginator153]

@@dgthe3 - Exactly! I also agree that China isn’t interested in whether the line makes money. The Belt and Road Initiative seems mostly about political and economic influence, not profit. Also, it seems counterproductive for China to make low quality infrastructure because the point is for developing countries to look to China for their infrastructure development.

[@Propapanda0213]

@@TohaBgood2 You are just imagining from your poor stereotypes. You are just using that several cases repetitively and that’s everything you could imagine of. Which country does NOT have engineering disasters or corruption issues? I’m not saying China is better in containing corruption but reminding you that the amount of infrastructure built in China every year is higher than the rest of the world.

[@TohaBgood2]

@@Propapanda0213 I'm "imagining" from a leaning Chinese tower in my home town that is now costing nearly triple to fix! Otherwise that tower will fall on other towers and on a multi-billion dollar train station! And the question is not if engineering mistakes happen. They happen everywhere. The question is about the utter disregard for safety and sound engineering practices that Chinese firms practice. Those firms are bred in a non-competitive internal Chinese market where everything is decided by nepotism. And we see how that makes those firms incredibly corrupt and incompetent. They're just not capable of sound engineering in a competitive and safety-minded market because they have literally never had to do it in their own country.

[@caiofleury3924]

The sinophobia in this comment section is appalling. China is doing what the USA and the IMF have been doing for decades. Since when are you all staunch anti capitalists?

[@TheDd2402]

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.

[@lethalronnie7729]

And that military hardware are the source of war

[@seanbryan1739]

Use your brain. USA 🇺🇸 guarantee African countries a market for their manufactured goods. China has not. Smh 🤦‍♂️

[@johns5558]

Agreed. Western Analysts should be wary to do genuine comparison of what the Chinese are offering versus what Western Capital has offered and achieved in Africa. "Placing countries in debt" is not a worsening of terms, that's merely the Chinese doing instead of a Western entity. The question is: "Whats the trade?" Infrastructure is a better trade than military hardware or possibily defoliating and corrupting nations for natural resources.

[@doujinflip]

Conveniently ignoring all the relief, education, and smaller site projects America funds abroad, which aren't so flashy for local politicians and in fact tend to work against entrenching the incumbents by breaking down tolerance for corrupt governance.

[@ScoobieDoo-zy1rh]

@@doujinflip build schools to brain wash the populace is good , supply weapons to them , regime change . Rinse and repeat. No wonder Africa is the way it is … 🤦‍♂️

[@spider6660]

First of all, the railways are not something for profit. But it'll create more job opportunities in other ways such as repairing yards, cargo and port related jobs, supply chains, reduce the use of fuel ⛽ for truck transportation, etc.

[@kennethshen2893]

I used to work in this project, I was in charge of land acquisition, I am Mr. Shen. Hope my friends in Nairobi still remember me.

[@Propapanda0213]

工作不容易，辛苦了

[@adrianooliveira9144]

Maybe you guys from the "first world" think just you deserve a comfortable transportation. Saying $200M loss in 2020 is a bit dishonest when you forget to mention the pandemic. Imaging that there were no roads between those two cities could be ingenuous not to justify the investment. But no, it's just the eternal racism rich country people and WS journalism throw away. An investment of this magnitude takes years to pay itself and to work on. What a terrible article!

[@kevincui1631]

Exactly. The writer should be in shame

[@pbworld7858]

Exactly. These privileged few enjoy good transport (except the Americans who might get a HSR next century), and yet they just don't want to see poorer countries develop. It's in their mindset that poorer countries stay poor.

[@AGP335]

You're completely missing the point. WSJ is a FINANCE and INVESTMENT focused media organisation. The main focus of the article is not to say that the SGR is a failure objectively; it's to report that the project was expected to be profitable, and ultimately wasn't, and serves as a case study of to explain why the Chinese government is now scaling back its BRI plans. You see? You're just choosing to take offense from this factual report, which gives no opinion on development or transport quality, as that's not what the report is about.

[@HTeo-og1lg]

@@AGP335 . Sorry, I have to call you out on this. WSJ is not just "a Finance and Investment focused media". Truth be told, it is has been at the heart of US domestic politics, as well as geo-politics in recent (circa since 2008) years. It uses pseudo economics metrics to be fanboys of QE 1 , 2, .... when Bernanke, Yellen, and Powell wanted to gather a "posse" to justify them. Now, the "mis-deeds" are coming home to roost, as we are at the cusp of an inflation beginning with only a reportedly 8.9%. Anyone who thinks that WSJ is not un-objective in their opinion pieces disguise as reporting, kindly note that I have a planet to sell at a price you can well afford. Interested?

[@JaimeWarlock]

Agree. I live in Kenya and I am seeing huge number of benefits from the SGR to the locals. This goes way beyond cargo revenue.

[@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

[@JosephMwema]

They cannot decouple the usefulness of SGR to the citizens of Kenya outside the prism of capitalism. The imperialists are always dogged by this one trait because as long as they are not monetarily benefiting from it or see how they can milk it, then it is a useless endeavor.

[@Immigrantlovesamerica]

So many Chinese supporters on here.

[@mwangiirungu3670]

@@JosephMwema they think it isn't good as long as its not done by them

[@Western_Decline]

@@JosephMwema We know White lies when we see them.

[@segalliongaming8925]

So the benefit of the railway isn’t profit, but rather political? Good to know. I hope Kenya’s friendship was worth the price that China paid.

[@jaymchelsea2839]

I am Kenyan and we love the SGR. It is now making money and phase three to Uganda is now starting. The project has greatly changed the country, for example, promoted other sectors like tourism.

[@feels.like.coffee]

The irony of 'Wall Street Journal' talking about how being in debt is a bad thing, but if you take one look at wall street...

[@kipsangaaraplimo1442]

It's so funny how the west review African matters😂. Dude, ask Kenyans whether they like sgr or not, simple poll. 80% like will be an underestimate

[@ims3312]

😂The wsj doesn't even pretend to care about sub-Saharan Africa. It only cares about China.

[@stevensmith2078]

I like my BMW too, which cost three times as much as it should. I still should not have overpaid and should have bought a Toyota instead.

[@krishnanunnimadathil8142]

Sure they like it. Everyone does. The only question would be whether they can pay for it.

[@ezioauditore5616]

jealous westerners cant even make an hsr, california hsr wasted 100b and still nothing to show

[@rncmv]

@@stevensmith2078 you should have offered a better deal

[@peterkariuki9475]

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 .

[@jeffitachi2589]

Yeah true 100 percent

[@user-gc1hg9sp9k]

And also most of IMF debt are not effective because many of the fund are corrupted by local politician, at least Chinese loan are creating an infrastructure that an ordinary people could use and benefits

[@peterkamau595]

This is not true. SGR did more harm to economic growth than benefits. 1. Opportunity cost. Could that money have been used elsewhere to produce greater economic benefits? 2. It ruined Mombasa's economy. Cargo trucks owners went bankrupt. 3. It made transport more expensive. Transit via cargo is almost half the cost of transporting via SGR. 4. General corruption. The contracts are still privates but we had information that over 1.5 million was used monthly on credit. Land compensation was also full of corruption cases. The SGR in the long run will drag economic growth unless its profitable. We don't have endless resources to support such white elephants

[@redakteur3613]

if it consumes more than it’s produces it’s not an “economic growth”. This is an economic slowdown

[@peterkariuki9475]

@@redakteur3613 I don't know what made you think Kenya Is not capable of paying it's debt but the truth is that Kenya is well capable.

[@garethxue8938]

300 miles, started in 2014 and finished in 2017, Miracle. Impossible in the UK, US and Germany

[@WJV9]

No problem if you can just take the land and not have to fight lawsuits for confiscating private property.

[@quietCello]

Let's hope that WSJ has the capability and motivation in reporting the successful and "not-so" successful things that the western countries have brought to Kenya and the rest of Africa in the last few 100 years...

[@bonikula9150]

I visited Kenya to specifically use the SGR. The citizens who use to do a 12hr commute now spend less than 5hrs on the same trip. It costs $10 which is pretty affordable for the average person. It might be an expensive project, but in the long term it really improves the lives of the Kenyan people. China will continue to win in Africa and Asia because they provide funding and do not interfere with local politics. Unlike other forms of funding which come with a lot of political strings attached

[@Mydisdain4beggerz]

I feel sorry for you.

[@lcox6468]

And you don’t think at some point they will want a return?

[@rncmv]

@@lcox6468 anybody does want a return of an investment; IMF

[@kolejny111111]

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

[@JB-yb4wn]

You really hit the nail with that comment. Management and cronyism is the biggest impediment to African development.

[@johnstreet819]

famous last words for another crynese debt trap

[@u-know-this]

IF IT IS WELL MANAGED underline that 100 times

[@felixdatche9278]

The Western media is stupidly obsessed with blowing out of proportions a few challenges here and there. These projects are very viable. Watch this space.

[@Edward4Plantagenet]

When you put your money, You can wait., Bite nails, sleepover. When you take credit, It must be returned in time.

[@shannonhalford3507]

Mirroring " investments " all over the Continent of Africa-see the pretty sparkly object-do you want it-it's yours! Without crunching the numbers, & being realistic regarding what would really be needed to pay back " a loan ". Have to read the small print, what natural resources secure the loan?-collateral. I am NY Toms very British future wife, Veteran, Middle East & Continent of Africa GREAT VIDEO!!

[@justhoodug]

Just like roads, water, electricity and public hospitals, the SGR should be treated as a utility not at how much money it makes. SGR is a public utility and service to people. I have just returned back from Kenya. I spent 9 hours and USD13 on the road from Nairobi to Mombasa, it's a super risk highway with trailers. Anything can happen on that road. My return journey on the SGR was 4 hours shorter safe and costs 5 dollars less than travelling by road. Reaching Kisumu and Kampala, will quicken movement of people between those countries

[@patrictutaki3786]

The development of a railway transport system will be advantageous once the mining industrialization throughout Africa comes online

[@waynehewett4017]

There's no point if the railway doesn't reach thoses so called mines or transport hubs is it What happens if it cost another 3.3 billion dollars to build that infrastructure The railway is losing 200 million dollars per year now and still owes 3.3 billion dollars plus interest This railway was nothing but a debt trap in the ccp favour from the start

[@robinlecomte1242]

Will China be involved in that process? If so, will the mining extract be exported, via Mombasa port to China? Me thinks yes!

[@hasanjamalkhan689]

Net sucks 😕

[@waynehewett4017]

@@robinlecomte1242 due to the CCP greasing the Kenyan government officials There is no difference between the CCP and the Marfia

[@gontse1386]

@Thomas Jordan what's funny

[@manypeople4951]

I'm a Kenya living in New Zealand for 20 years now. I have to connect 2 trains to Auckland city and it takes almost an hour and a half while it takes less than 30 minutes if I drive. I traveled from Mombasa to Nairobi years back.The train used to leave at 8.00pm and will reach it's destination the next day at 8.30am. So now with SGS it takes only 8 hours that's progress. Stop this nonsense man!

[@alexmacharia5403]

Am kenyan and thats not all of it they even introduced a tax cut for the railway, everytime you import something the tax goes directly to finance that specific loan.

[@charlesscott4722]

Ths project was finished in 2017. So, when you say it hasn't paid for its self, was it supposed to recover the entire $3.8 bil cost in just 4-5 years of operation??

[@jouvertalandwa5337]

You always talk of big bad china yet France in Africa is the worst thing to ever happen to Africa

[@bloggtalk5085]

thank God they have zero influence in kenya although they are one of biggest lenders to kenya

[@user-gc1hg9sp9k]

@@bloggtalk5085 and yet they say china is debt trapping kenya lol

[@bloggtalk5085]

@@user-gc1hg9sp9k propaganda.$3.8b debt on a $110b economy is not drowning

[@user-gc1hg9sp9k]

@@bloggtalk5085 especially those debt are in form of infrastructure project, I would say that indirect benefit are outweight the cost of the project. Even the raise of land value alone could potentially cover the entire project

[@H3LLS3NT4SS4SS1N]

France?! What the west African’s did to themselves for Portuguese coin was awful and extremely destructive and has destabilized the entire region ever since! The actions of the agents of Belgian king Leopold II in the Congo were insane, aggressively inhumane and near genocidal! but surely the worst influence on Africa has been that of the Arabs and the Islam they imported to Africa. When one looks at the countries of Africa today, the Islamic countries have far worse human rights, violence, development and governmental stability. An excellent example is Nigeria: it’s mostly Christian southern realm is largely stable and relatively well developed, but it’s mostly Muslim northern realm is dilapidated and overrun with violent jihadist groups. The lands of North Africa should be wealthy, stable, developed and powerful since they are close to the trade hubs of the Mediterranean, Suez Canal and west Asia, as well as having a climate desirable for the production of many valuable crops, large and stable populations, easy access to fisheries, diverse and vibrant histories of advanced societies as far back as 900BC, and even large reserves oil and other hydrocarbons! Instead, they are lower-middle income countries with oppressive, authoritarian police state regimes, abysmal conditions for women, SLAVERY even today, weak educational systems, weak government institutions, huge populations of migrants attempting to flee and creating humanitarian crises and political disasters for the European states unlucky enough to have them flooding their shores in cheap inflatable rafts, rampant corruption and rampant violent Islamic terrorism. ALL of these problems can be directly traced back to the influence of Islam, sharia, etc. on the people and the state.

[@jeffitachi2589]

I am a Kenyan and I disagree with most parts of this report.The SGR rail project has more prons than cons.Since its launch more than 7.8 million passengers have been ferried by it , transportation cost and time has been reduced by close to half,more towns and industries have popped up along the railway line just to mention but a few.It's not a must for it to make profit immediately for it to be considered successful.Easier movement of goods and services means more taxes collected by the government thus in the end Kenya will pay the loan back.The relationship between Africa and China will be even stronger in years to come ✌️

[@user-gc1hg9sp9k]

I think this guy are underestimated about indirect impact of railway on kenya economy And funny thing is this guy is complaining a railway run at loss while interstate highway that connect US aren't even make a single profit and cost billion dollar to maintain and expand

[@jeffitachi2589]

@@user-gc1hg9sp9k Yeah well said facts 100 percent.This guy doesn't understand economics very well or just ignorant

[@itgamingke]

Same views here

[@AGP335]

The SGR is a good thing, no doubt. However the main point of the report, especially from the perspective of the Wall Street Journal, a fianance-focused news organisation, is to say that from China's perspective, the SGR was a short-sighted choice. They did not finance it out of charity; it was believed that the railway would be profitable immediately, an unrealistic expectation, and since their money will not come back as quickly as hoped, consequently (along with other financially dubious projects) they are scaling back their belt-and-road plans. I think the SGR was a good thing to build anyway, and will pay dividends in the years to come, cause the Mombasa Road certainly won't get any faster any time soon!

[@kagz100]

Passengers don't pay the loan

[@fahemhamou6170]

Thank you very much

[@AbrahamSamma]

Amazing reporting thank you for this. A lack of competitive bidding at the beginning was already a red flag.

[@prometheus0629]

Amazing reporting? It is clearly subjective and designed to paint China in a bad light. It comes from a heart that was eagerly waiting for the project to fail just because of China. I am sick of these white racists mansplaining about Africa. Can he tell us the return on investment that the USA and its allies made after spending 3 TRILLION DOLLARS in Afghanistan? Taliban won and took over. That should be the focus of these reporters should be asking their governments.

[@djfreddiereddie]

Even Amtrak in USA doesn’t make any profit !!! Majority of lines in US are private with monopoly! Meanwhile Ruto messed up tho Railway was built and running well before truckers killed rail transport!!

[@ashutoshtare9079]

The car manufacturers and the oil corps never let usa have a mass transit. While Europe, China and India built huge networks of it.

[@alanlight7740]

America's passenger rail is not profitable. But America's rail freight is some of the most profitable in the world.

[@andia968]

you look from a business man point of view, that is it has to make money. The problem with this thinking is public infrastructure is not meant to make money but to serve people and to stimulate economy which in turn will result in economy growth and as a result government tax revenue will be bigger . How about dam,highway, bridges. Should government make profit out of those? Those three above lose money but is needed to stimulate economy. China has been doing this method sucessfuly since 40 years ago started with normal rail network. Public transport is subsidized by government to provide affordable transportation for people. Isnt that what government supposed to do? To serve people and not to make money out of them ( business man thinking) China is not purely capitalistic. Using US logic than all fast railroad will never be built at all. It is no wonder why public transportation in US poor .Take a look at NYC subway and compare it to nanning (a 3rd tier city in china) subway. The contrast is like heaven and earth.

[@Bloodlinedev]

@@andia968 Thank you, that is on point

[@rncmv]

@@alanlight7740 "America's passenger rail is not profitable." passenger railway service is never profitable; it is not even supposed to be profitable; only in screwed Gringo minds

[@FMercuryEA]

The SGR is a good idea only that the section done is too short and captures a very small catchment area or zone. Had this line gone all the way to DRC and in particular Goma DRC and Kisangani DRC not forgetting it's northern route to Juba south Sudan, then it would be a viable opportunity to open all sectors including tourism. The opportunity is still there but there was underinvestment in terms of extent of the catchment area. By the way, who hasn't noticed that local tourism is at it's highest and nearly all year round at the coast of Kenya ie diani, watamu, Mombasa etc. This is courtesy of the SGR Kenya.

[@our10picks18]

Each East African country is responsible for the building of their own SGR sections! Some countries are a bit reluctant to this!

[@JosephMwema]

Very true! This coupled with free movement of people and goods around East Africa.

[@eacoincmubiru5894]

Fine Mercury you are 100% correct. If it connected to Uganda and South Sudan, it would have been viable

[@valerievankerckhove9325]

This guy gets it. Infrastructure has multiplicative effect. Building transportation from A to B may be a little useful. Once you've also built transportation from B to C, then the A to B section becomes very useful. If you Then build a section from C to D or from B to E, then A to B becomes extremely useful. However, you need to start somewhere. Africa needs to go through this painful process where each section built will only seem a bit useful, but once everything is connected, Africa's potential will explode. China has unlocked the world's biggest e-commerce market as well as huge domestic tourism, plus a huge number of business men are traveling all over the country searching for and creating opportunities. This is all thanks to investing in all sorts of infrastructure from transportation to internet connectivity, and one day Africa will reach this point too.

[@kentosh120]

But 80 percent of cargo from Mombasa port is for Nairobi and it's environment. Why spend billions of dollars loans for 20 percent of cargo to other parts of Kenya and beyond?

[@olivermboya3857]

An interesting look into what is happening... Thanks for that

[@saintpatrick6681]

Shelby is a great ride

[@tongbohuang]

And we still don't have train between San Francisco and Los Angeles. Fml.

[@benjaminlehman3221]

I know right. 300 mile track in 3 years AND ahead of schedule. Never would have happened in the US

[@johnsamuel1999]

This is a normal train , not a high speed rail like in CA

[@billyhe2724]

@@johnsamuel1999 the last train track built in Kenya was by the British, over 100 yrs ago. That’s how big the deal was when China built this.

[@vijananarutomovement7625]

@@billyhe2724 kinda true

[@skipperson4077]

Amtrak between Oakland and LA is $51 one-way with 20 trains/day. It took me approx. 10 seconds to find this...

[@AR21]

Better than IMF loans which keep poor countries poor.

[@daveygiturwa8598]

Also western loans require regime change or coup's so as to be given👎👎

[@AR21]

@@daveygiturwa8598 👏👏 on point👌

[@georgepresley5120]

Do your research on IMF and save us your ignorance. IMF doesn't fund grand projects..they help countries manage balance of payment difficulties and chip in when international financial crises happen

[@AR21]

@@georgepresley5120 please do your research too.. Most countries can’t get out of the debt trap from IMF Neither are good but. At least China gives people a bridge or railway. The public can use!

[@georgepresley5120]

@@AR21 IMF can't give you a bridge or a road but it's the institution you will run to when you fail to pay for that bridge or road. The Chinese give you expensive loans with conditions that only benefits them. The SGR was funded by the Chinese,built by the Chinese and with Chinese materials. Even the staff running the SGR is Chinese

[@frankzambezi]

Unlike debt from the West, they have a railway to show for it

[@user-xi2zu9wz3c]

I am Chinese, not a bot. I hope this SGR could be profitable early for Kenya. As an infrastructure, it offers a choice for people living on the land, and it will change the movement of people, and goods, the same as things happened in China. Some focus on the future, and some focus on the present.

[@David-gy6fv]

SGR Will expand to Uganda, Congo and Southern Sudan to conquer the region. This is the best thing that ever happened to Kenya. The current problem is due to Politics and change of government but the new government has no choice but to follow up with dept payment. Kenya was amoung the few Countries that benefitted enormesly from China belt and Road project since our economy was ready to expand. Not all countries had the same chance.

[@joeferreira657]

Railways opened up economy's all over world,people can travel quicker, long-term binifits for country, quicker safe transport. Amazing engineering connecting two city's, eventually will be paid for.

[@donaldmaxie9742]

From what I've heard China requires the belt and road projects use Chinese materials and labor. The receiving country has to pay off the loans used to finance the project. A good deal for China.

[@jahookulchamusic]

OK Mr. and Mrs. Kenya 🇰🇪 expert, from some other continent,look at that 😊

[@pkwong1940]

Kenya needs to shout to the World there is no BRI debt trap. Tell the World what Kenya's debt is to China compared to outstanding loans owed to the western nations, the World Bank and the IMF. Why is there no mention of these debts owed to western nations, the World Bank and the IMF?

[@itgamingke]

Ikr they want to make Kenya look like it struggles to pay its loans back to China when our relations go way back

[@daveygiturwa8598]

Tru👌👌🙌🙌

[@usejasiri]

This is a US channel, what do you expect?

[@riteshpandey814]

Because Chinese give at 4% and IMF at 1 or 0.5%

[@AMGW11]

@@riteshpandey814 Of course I expected an Indian to say something negative about China.

[@abheekkbose]

Would be great to understand a bit more on the financials. If the SGR made a 200M loss, then how is it that the debt decreased to 3.3B? Is it possible that SGR paid back 300M and therefore made a 200M loss?

[@sriarrow]

Oh man! I didn’t expect such comment. It’s operational loss. In addition to their loan.

[@krishnanunnimadathil8142]

Loan repayments are treated as balance sheet items not income statement items. The interest on loans issued is recorded as an expense however. But, in government accounting, they may sometimes take cash payments for loans as part of annual expenditure itself. That’s why they often record “surpluses” and “deficits” as opposed to “profits” and “losses”. Would be worth digging further into the public documents. It may be a USD 200 million “deficit” and not a “loss”. That said, continuous “deficits” are not a good thing either; the money has to come from somewhere!

[@jacktonowino]

You should continue doing a lot of videos about Kenya. You will never go wrong.

[@modemmann303]

Interesting. Thanks! :)

[@zinjanthropus322]

Most railways aren't profitable.

[@billyhe2724]

Most infrastructures are not because it’s not pure market good. It is the responsibility of a government. You don’t always measure simple financial ROI on infrastructure investment.

[@HTV-2_Hypersonic_Glide_Vehicle]

@@billyhe2724 correct Mr. He

[@sbkarajan]

In case of Kenya, I think the US is sabotaging and badmouthing the Chinese effort. Did you know that it was the US or its stooges who blew up the nordstream pipelines just couple of weeks ago? The US will do anything to desperately keep itself at the top, but time is running out.

[@EduardoEscarez]

I think the point of the video is that the railway was built with the idea of being profitable to pay its loan, but it hasn't for several reasons and someone need to pay the debts. And it isn't only about Kenya but also about how China financed projects without enough consideration and its hurting its own bank's finances either though defaults, write-offs or refinancing in a moment when its economy is struggling with other issues. Also, how BRI isn't going to repeat this kinds of plans on the future.

[@millionantschannel5528]

@@EduardoEscarez Kenya’s Chinese debt constitutes less than ten percent of the overall national debt, Kenya is a middle income country which can sacrifice and pay the total Chinese debt in a year if worse comes to worse. There’s no time that Kenya defaulted to pay its debt obligations. Kenyan government decision to go for the project was purely for the long term benefits and not short term. The west still angry for not being given the project

[@scasey1960]

CalTran in California USA requires 80 % of the revenue to come from State & Federal funds. Although a ticket from San Jose to San Francisco cost $20, the real cost of the ticket is $100 (the same as an Uber drive). Can you analyze other US railroad projects and actual revenue models? Africa seem the same as the US.

[@seanbryan1739]

USA didn’t borrow money from China to build it. California is the richest state. Use your head, see the difference

[@physiocrat7143]

US railways were funded substantially by land grants.

[@davenobody407]

Under the same logic every road in Kenya is built with a loss and is not profitable, therefore Kenya should not have invested in any roads whatsoever.

[@adrianqx]

As Kenyans we don't even know what the SGR contract between the 2 countries contains , the former president refused to reveal what the document after promising to do so !

[@bobkhan9946]

I heard about the Chinese debt trap since 2013, but why are a lot of countries still dealing with China that makes me wonder if is it the truth about that.

[@paniniman6524]

@@wakawaka5131 and give us your source

[@angeliquewu8318]

@@wakawaka5131 A lot of bullshit yet not a single source to back it up with

[@itgamingke]

@@wakawaka5131 source ???

[@itgamingke]

@@wakawaka5131 The Government denied on defaulting the loan payment check @africanews

[@jetli740]

@@wakawaka5131 8-10% loan is a debt trap but those hold the other 90% is not a demb trap. your Logic is not working too well

[@LastEmperor86]

We as Kenyans 🇰🇪🇰🇪🇰🇪 love to travel on the SGR,and we ain't complaining about paying the debt

[@victoraugustusonyango8463]

Everyone sensible in Kenya is complaining. For chrissakes, the government itself defaulted on the last payment and China has penalized us Ksh 1.3 bn. There's no rosy picture to be painted here

[@itgamingke]

True 🇰🇪

[@ursodermatt8809]

yes neither am i complaining about your debt.

[@sidjain999]

Lol be ready to shell out for more for paying the debts of China , soon you guys would realise that how China made Kenya fall under its debts just like Sri Lanka and Pakistan

[@ashutoshtare9079]

The future generations will face the consequences.🙄

[@1twoone2]

Belt and Road = How can I pretend my goal is to help you now, so I can control you later.

[@getreal6595]

Would love a study on the Tanzanian SGR too , Thank you brother !

[@itgamingke]

It's done yet or even commissioned

[@rh-bd6wv]

18 months ahead of schedule! Bravo!

[@funfab9146]

What bravo Kenya is in China debt trap this What china want

[@rh-bd6wv]

@@funfab9146 No offense intended. Here in America, we see so many projects go over-budget, beyond schedule and/or unfinished, it was encouraging to hear about a project going better than expected. As to debt, we have more than our share of experience with that as well.

[@nimrodchokwe711]

The British built the first railway from Mombasa to Uganda for free. After independence, all they had to do was to maintain and upgrade the rails like the ones in European countries!

[@alexandermutune6131]

There is nothing they did for free.What about all the resources that were extracted from the interior & transported using the line to service the thriving British industries at the time?

[@mfululizowak9899]

@@alexandermutune6131 were we educated enough to know what to do with those said resources? Lol

[@mfululizowak9899]

Imagine!!! And we just FAILED. This was also supposed to be an electric train but cause corruption is the national language, we got a slower train. 🥴

[@alexandermutune6131]

@@mfululizowak9899 The resources can stay until the owners are well educated to utilize them.

[@mfululizowak9899]

@@alexandermutune6131 lol...the same owners who would sell their own people for tortoise shells, liquor and sweets? How do you know our ancestors, who didn't know the value of ish, didn't sell those resources for dumb stuff again?

[@gautambatwar7231]

Good information

[@ChefGeorge]

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

[@robbiedozier2840]

Man it’s almost like rail is an inherently unprofitable venture and should be seen as a public service

[@bestdrip3377]

Entire premise of the video is that infrastructure should pay for itself, which is very often far from the truth.

[@gunsumwong3948]

Yep every public road is free to user in every country but the local government has to maintain it for ever.

[@LCTesla]

On a national level it should pay for itself, in terms of direct and indirect benefits. My understanding is that is also in question. It's all just running way too far ahead of places like Kenya being worth connecting on this scale.

[@stevensmith2078]

Your comment is largely true. The question is whether the cost, including the losses, is worth it. If it still costs more to move cargo from Mombasa to Nairobi than from Shanghai or Miami to Mombasa, when cargo transported by truck is cheap (much cheaper than by truck), then there is no advantage and Africa will remain uncompetitive in trade, which is the tried and tested path to economic strength. Simple arithmetic can be applied to see if the price was too high, the loan term too short, the truck lobby too strong, and the passengers too few to cover maintenance and operating costs. Kenya should have built this basic infrastructure themselves.

[@gunsumwong3948]

@@stevensmith2078 That is the difference between the western and Chinese attitude towards roads and rails. Hundreds of trucks and the fuel cost plus the deterioration of the road and the vehicle can never be cheaper than by rail. If it is the other way then it is to do with pricing of the services. The most important benefit of the new infrastructure is the economic development it brings. The land value surrounding every station is guaranteed to rise possibly 10 times. New towns and cities could be developed. The new tax revenues from the passengers and the freight earned by the government are real benefit but are not on the SGR's book. The gain in economy associated with the SGR is impossible to calculated. The SGR spawns a new rail industry that provides hundreds and thousands new jobs in management, operating, signalling, maintenance, training centres and repair shops. The technology transfer itself is also substantial because Kenya now has to master the complete system. When China tried to buy the Germany's HSR system the cost of technology transfer was same as the HSR itself. A BRI project is win win arrangement. If China loses out that means the host country wins more. The overall result still fulfils the spirit of the BRI. China is doing a lot of things for free in Africa. It built schools, water supply systems, hospitals, sport stadiums, a CDC centre and the African Union Head Quarter as gifts. Most free donation of Chinese vaccines end up in Africa. Since 1963 China has been sending medical teams to provide free medical services initially to Algeria and later to many African countries. Today there are 45 to 50 medical teams still operating. It might have nothing to do with it but the African continent with 54 countries put together still has less infected cases and covid deaths than the US. It has been like that since the covid started! Kenya is building the SGR itself. China is assisting in whichever department Kenya needs help. You may have not seen the youtubes videos of Kenyans being trained in their SCR trains manufactured in Chinese factory or the drivers trained in China's HSR system. In a nutshell a lot of China's own HSR lines do not make profit and a few wouldn't even be able to pay for the electricity consumed but China is still building them to suit its development plan which could be 10 to 15 years ahead. You can dispute it but the Chinese experience is to be come better off the first step is to have the infrastructure available.

[@stevensmith2078]

@@gunsumwong3948 The SGR is a great idea. Infrastructure needs to be built (and maintained) first. I promote that and that is not the problem. The problem is that the basic infrastructure, which is not complicated, should be built by Africans. The complicated technology of the trains is built in China, which is fine in the short term. Are Kenyans, Africans engineering the trains in China and getting technology transferred? This is what Africans should require and what China did. Do you disagree? Learning to drive a train is not transfer of knowledge and is less than flying an airplane (as if pilots flying Boeing and Airbus planes is knowledge transfer. Delete that nonsense from your post). The issue is one of cost of the line, it not going to where the demand is, the loan repayment period being too short, etc. Please keep the propaganda. My comments are not anti-Chinese, or pro-West. They are pro-Africa and I will continue to point out issues where they exist.

[@husseinnassir3372]

well explained

[@hansweissmann_xviii6754]

Sad! This line is even better than the ones in the US! Yet, the WSJ believes it has the audacity to judge!! How sad can one get???!

[@itgamingke]

Kenyans love SGR and use it daily for cargo and passenger services. So far they're making profits which keeps increasing yearly. The only problem is that the train can't go upto Naivasha inland depot since it was shut down by the new president with claims that's it was a waste of money to move cargo away from the port to farther inland but it made it easier for Uganda to get their cargo faster from Kenya

[@munenejoe6682]

not true

[@itgamingke]

@@munenejoe6682 ofc I can't speak for every single Kenyan but it's clear the majority have no problem with SGR

[@livenlearn2712]

If you look it up, you will find that it is not profitable. The executive order requiring use of the railway was meant to help make it profitable.

[@KIM-xl6zs]

@@munenejoe6682 the sgr has never paused even for a day, so stop lying dummy

[@waynehewett4017]

How can they be making a profit if the railway is losing 200 million dollars a year ? Plus still have to pay back 3.3 billion dollars plus interest ? So how is that in any way making a profit ?

[@electrapo1184]

The cost of building the SGR in Kenya was inflated by double the cost. This is what happens when even the president is purely corrupt.

[@markisto8655]

I'm surprised none of the Kenyans defending the rail wants to mention that, or even the government's failure to make public the SGR contract.

[@pietrojenkins6901]

Total BS .

[@Boss-313]

Was Kenya expecting China to foot the bill for the entire rail network without any real intention or method of paying the money back? glad China has stopped further loans to complete it as that would be financially irresponsible to do so.

[@advancetotabletop5328]

I don’t see how this can be avoided. If you have a high risk debtor, then anyone loaning to them will demand a high interest rate - or other sort of return - in return for taking on the higher risk. It’s just that, with governments (and businesses), those in power don’t’ have that much to lose other than their positions when agreeing upon the loan. In any case, I’d like to see how the infrastructure projects turn out ten years from now.

[@charlo90952]

Will London's Crossrail and HS2 be profitable and pay their construction costs?

[@ims3312]

hs2 has not even started mining iron ore.😂

[@physiocrat7143]

The Jubilee Line Extension generated an aggregate land value uplift of 3.5 times the construction costs. London Overground and Crossrail have given rise to property booms along the routes. As far as I know they have not been measured. These projects are a massive giveaway to property owners. Same on the South Coast. Train services were restricted due to the bottleneck at Croydon. After it was rebuilt in the 1980s the trains became more frequent and reliable and more people started commuting. House prices in Brighton then shot up.

[@judithokemwa2807]

The road to industrialization is painful. Initial outlays are expensive and take time to reap off from. Ruto's hasty decision to revert port operations fully to MSA is an indication that his vision is not about industrialization and increasing cooperation between regional countries but is really about winning the support of MSA voters. Shortsighted and Sad!

[@jmg8246]

Look what happen to the proposed American build Highway in Kenya: The Kenyan government has been forced to replace a US contractor; Bechtel Engineering, with a Korean firm after a fallout in a financing model for the proposed Nairobi-Mombasa expressway. The state had proposed a toll fee business model where the American firm would source funding and then recoup its cost through toll fees, but the company declined the offer. insisting on a contract model where the government would pay for the construction of the Ksh318.25 billion Mombasa-Nairobi expressway.

[@CodingExpress]

Very nice documentary

[@itgamingke]

China and Africa(Kenya) bond is different from what the media things it is. All the major infrastructure projects done in Kenya we've had a helping hand from the Chinese in cooperation with our local companies and government organizations

[@itgamingke]

USA has Trillions of debt more than the what Africa (continent) owes China. NOBODY TALKS ABOUT That. Africa is changing in a hands with China since USA/UK fail to make the deal fair and convenient to pay it back. Korea and Japan too are investing more than before in Africa

[@vijananarutomovement7625]

This mzungu is behind time, just bitter

[@blastroisehunt6546]

Us can generate endless stream of $$ trillions of debts cannot cut it lol

[@itgamingke]

@@vijananarutomovement7625 for the first we both agree 👍🏽 💙💛

[@SeattlePioneer]

Sure they do. That's why you know about it.

[@stevensmith2078]

If Kenya borrowed in its own currency, it too could have options. But it is near the limit of the debt it can service. The most economically viable projects should be built first.

[@qolspony]

It isn't a failure project, because it has even been open that long. Most businesses give at least a 10 to 20 year timeline, before a project is deemed successful. Besides, if they already managed to pay some of the loan back, that is a success of itself! Give it time!

[@stevensmith2078]

Most lenders would have a longer loan tenor for this kind of project. Tell the Chinese to provide appropriate terms. The project might actually be viable. BTW, cargo makes money, passenger trains are typically subsidized. Cargo moves cheaper by train than by truck by a facto of three to four times. If it is not, there is incompetent management, political interference and other issues that will prevent Africa from being competitive in trade worldwide.

[@user-dg5ll6hu8j]

I am Chinese. Before participating in the project, I was asked to pay $100 at the airport in Kenya because I brought a few books, and corruption does exist. But fortunately, the project is completed now. Both Kenyans and I are ordinary people, and I believe the future will be better and better.

[@julianandygumbs4363]

As long as the financial World is literally controlled by the Western World, there's little chance in truly developing the Global South under these circumstances. The best way to hedge your bet against incurring massive debt is to accumulate USD. However that is difficult to come by without steeper cost. A MultiPolar financial World with regional nodes is the best solutions to these matters.

[@aldunlop4622]

What the fuck has this got to do with the Western Word? China isn’t western and it clearly rips people off.

[@JB-yb4wn]

That will never happen. 1. A vast majority of the African countries are corrupt, so any USD you get is sent to white controlled countries for safe keeping, your own leaders don't trust their own civilians. 2. You have nothing to sell that the US or Europe can't get somewhere else, and that somewhere else usually has a robust infrastructure that works most of the time. For example, there is a video here about a Ghanese cocoa maker who is lamenting the fact that they don't make chocolate in Accra. Well you have no milk, you have spotty electricity, rare to find skilled technologists as they have left for the better managed white run countries, and we won't begin to get into things like quality control and cleanliness in these plants, so there is no way in hell these plants would get certified by potential export markets. 3. As long as Africans think like a tribal people and not as a nation, they will be taken advantage of as the West, (and the Chinese for that matter), are very good at playing minorities against each other. Most Africans trust the West more than their own leaders.

[@SeattlePioneer]

Wow! That's REALLY cheap!

[@DinoCon]

Question for all the people who actually use it: do you think that extensions from certain stations along the route, even small ones, could help improve ticket sales?

[@alexanderivkin7086]

When was the last time USA built a 600km railway out of nothing? 1880? This railway in Kenya is just the first step to finally industrialize Africa by force, so that their stone age life will change. You can not feed and deliver goods to 1,5 billion africans with stone-age methods or undermaintaned colonial infrastructure. This is why it´s very important that China controls everything, so that Africans can´t destroy what was built for them.

[@Lifestories254]

All this means is that the debt will take longer to pay off.Atleaast the railway is operational but not as expected.Not only small but also greater nations have debt.So lets not make a meal out of it.With increase in population and infrastructure comes increase in demand and supply which eventually boosts the economy.Also remembering that there are other modes of wealth creation in the nation which aid in lessening the debt not solely the SGR.We are grateful of chinas support to african nations and not exploiting us like other great nations do.Lots of love to my country KENYA.

[@JB-yb4wn]

And then you will see the "quality" of Chinese made infrastructure really means.

[@u-know-this]

Lol so if you can't afford to pay for a car in your head you think u will be able to keep driving it? Trains break if SGR cannot keep up with payments how will it keep up with maintenance? Already the stations are starting to show signs of neglect

[@Lifestories254]

@@u-know-this only narrow minded people think like u do.U act as if sgr is the only bread basket of Kenya.Dont bring controversy where there is none..u can't stand that Africa is rising and its riots growing deeper...

[@Lifestories254]

Plus we have the commuter sgr train which is gaining traction amd performing quite well...The cargo freight train might be struggling but will surely pick up ...We are not worried as Kenyans ...

[@mfululizowak9899]

As a Kenyan I am worried because whose cost of living will go up? Do the math bro.

[@jamesraymond1158]

You left out the most important part. It's something like if Kenya can't repay the loan, China takes over control of the port of Mombasa, which they can use for any purpose, including military.

[@randomname931]

Projection. What military bases has china built in foreign land? Now tell me how many the US has.

[@andrewzhang985]

What a bullshit load of crap you are talking.

[@zeedykim9096]

We are capable of paying it

[@jamesraymond1158]

In fact, acquiring a port in East Africa may have been the main goal of the SGR. The Chinese probably realized that the loan could never be repaid. $3B for a major port seems cheap.

[@mfululizowak9899]

@@zeedykim9096 lol....😂🤣😂🤣 where?! We've just defaulted from paying and have been fined 1.3billion. We are enslaving ourselves again just cause our men can't build and develop like the white and asian men. All those studying engineering what have they been good for in Kenya when you still outsource the service?

[@salam9025]

Is that a pink Himalayan salt lamp behind you? Does it work to infuse negative ion in the room?

[@thiesemuel]

Railway system is one of those infrastructures that require long term vision. So let's not debate about it now.

[@pleongv1]

Railway is a public infrastructure which meant not to be profitable … the economic expansion and growth will indirect benefits the tax coffers of Kenya

[@collinsgitau6989]

It's interesting that although the project was economically unjustified it still took place. Also there not being competitive bidding is very concerning. It also makes no sense to artificially induce cargo traffic to the SGR by taking away from truckers. If the profitability of the project was dependent on it reaching Uganda, why wouldn't that have been done to begin with? Why built it only to Nairobi knowing it would be insufficient and would not break even?

[@weightlossexpert371]

Best video for internet good brother