Home East Africa Chinese firms secure lucrative road, rail, and electricity projects of Kenya

Chinese firms secure lucrative road, rail, and electricity projects of Kenya

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  • Infrastructure contracts f Kenya worth Sh1 trillion under the Jubilee administration have been bagged mostly by Chinese companies according to reports.
  •  China Communications Construction Co (CCCC) and its subsidiary China Road and Bridges Corporation (CRBC) have bagged the bulk of the road and railway contracts of Kenya worth Sh777.1 billion.

Infrastructure contracts f Kenya worth Sh1 trillion under the Jubilee administration have been bagged mostly  by Chinese companies according to reports.   China Communications Construction Co (CCCC) and its subsidiary China Road and Bridges Corporation (CRBC) have bagged the bulk of the road and railway contracts of Kenya worth Sh777.1 billion. The other Chinese companies which have won Kenyan projects include China Wu Yi, Synohydro, Jiangxi Engineering, China Railways 21 Bureau Group and Third Engineering Bureau of China City Construction Group.

Chinese companies started participating in Kenya’s mega projects with the construction of the Thika Superhighway between January 2009 and November 2012. The cost of the project was about  Sh32 billion. Since then CRBC and CCCC  started dominating the sector and claimed the lion’s share of Kenya’s mega projects — at least two railways, two ports and 23 road projects.

The dominance of Chinese companies has left local companies upset and they feel that they have been ignored as Chinese firms secured the lucrative road, rail, and electricity contracts. They allege that even county roads and real estate projects are also going to Chinese firms.

Transport Cabinet Secretary James Macharia defended the government stand in a media interview and said that Kenya preferred Chinese firms due to the speed of delivery and costs. Local contractors, however, claim that Chinese contractors are paid immediately for the job while Kenyan companies wait for years, accumulating pending bills. The Chinese firms, they say also use political influence and kickbacks to get the contracts.

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