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Kenya's flagship rail project recorded losses of $ 100 million (£ 76 million) in its first year of operation, according to the Ministry of Transport.
Kenya rejected concerns that the rail project was too expensive, unsustainable and economically unsustainable.
The railway line was central to President Uhuru Kenyatta's re-election strategy, launched only a few months before the presidential election last year.
While pbadenger trains are full regularly, the minister said that it was difficult to convince businessmen to change freight transportation from road to rail.
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Transport Minister James Macharia told a parliamentary committee that the state was discussing with leading private industries how to make rail transportation more sustainable.
The refund will begin next year, and if the railway does not reach the break – even point here, Kenyan taxpayers will have to pay that bill.
Economists estimate that China now holds 70% of Kenya's debt. However, the government hopes that the railway will start making profits in the next fiscal year.
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