UK Withholds Ksh 18B Nairobi Railway City Funding Over Tender Row
The United Kingdom (UK) has put a hold on the disbursement of Ksh18.1 billion (£100 million) for the development of the Nairobi Railways City Project.
This decision comes after the government failed to award contracts to contractors to start the construction of the project.
“The £100m for the urban development project, hoped to rejuvenate the area around Nairobi’s Central Railway station, accounts for approximately half of the total funding for phase one,” the Africa Report wrote.
The Nairobi Railways City Project stands as the UK’s largest investment in Kenya, aiming to reduce congestion in the Central Business District while creating employment.
It involves constructing a green city with office blocks, shopping malls, and a light industrial hub on Kenya Railways land.
The grand plan includes economic zones hosting cutting-edge industries and small and medium-sized enterprises, expected to create more than 200,000 jobs.
While the project’s blueprint was conceived during former President Uhuru Kenyatta’s administration, it was officially launched last year, with an estimated total cost of Ksh28 billion.
Despite the initial plan to commence last year, the project has faced delays, with the construction process yet to begin.
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The proposed site, encompassing 425 acres of land, includes the Nairobi Central Railway Station, the marshaling yard, and the Kenya Railways Pension Scheme Land (commonly known as Landimawe Estate).
This venture is part of a larger initiative, involving six projects with a cumulative worth of KES 500 billion, fast-tracked under a UK pact signed between President William Ruto and PM Sunak in 2022.
According to Kenya Railways, the project was poised to regenerate the area around Nairobi Central Railway Station into a modern Railway City, provide a Livable and Sustainable Urban Space, and create a Transit Oriented Development (ToD) to support Ridership for the Nairobi Commuter Rail.
It would also create a Transport Hub with Multi-modal Transport Facilities, expand the Nairobi CBD to the South as well and provide an Iconic development to position Nairobi as a leading World City
Currently, the fate of the Nairobi Railways City Project remains uncertain as the funding delay puts a question mark on its progress and implementation.
UK Withholds Ksh 18B Nairobi Railway City Funding Over Tender Row
