In the News
Will Kenya's new infrastructure benefit its economy?
The $3.2 billion project to build a railway to connect Nairobi and Mombasa is being seen as an important milestone in Kenya's journey to economic development.
The railway which measures 293 miles was funded by Chinese loans and it will cut journey times from Mombasa to Nairobi from 12 hours to 4.5 hours. It will also be quicker than the bus service which takes 9 hours.
The report on http://www.bbc.co.uk/news/worl... discusses how the infrastructure; whilst beneficial, may also prove to be an issue. The loan given by China will need to be paid back and despite projections that Kenya's GDP will increase by 1.5% as a result of the railway improving trade links, there is concern about the pressure Kenya has placed itself under, in terms of being able to pay the loan back.
The solution is to increase trade freight by passing laws to stop freight being transported by road. At the moment however, the projections regarding how beneficial this infrastructure could be is merely that - a projection.