The Chinese government has refuted reports claiming that it may take over Mombasa port if Kenya fails to service loan taken from China Exim Bank for construction of Standard Gauge Railway (SGR).
In a statement, China’s Foreign Ministry spokeswoman Hua Chunying has termed as false reports that the Kenyan government used Mombasa port as collateral for the loan.
“We have checked with the relevant Chinese financial institution and found that the allegation that the Kenyan government used the Mombasa port as collateral in its payment agreement for Nairobi-Mombasa railway is not true,” Ms. Chunying states.
China further says that the project is progressing smoothly and expressed confidence that the Nairobi-Mombasa SGR line is feasible.
Chunying also says it is almost impossible for African countries to be overburdened with Chinese loans since feasibility studies are carried out before projects are implemented.
“When cooperating with African countries including Kenya, Chinese companies and financial institutions will always conduct a joint and thorough scientific study on the feasibility of the projects and then proceed to determine construction and funding plans and scales to guard against causing debt risks and financial burdens for Africa.”
Last week, a report purportedly authored by Auditor-General Edward Ouko sent the country into fear after claiming that China is poised to seize the Mombasa port if Kenya defaults on the multi-billion-shilling loan.
“The payment arrangement agreement substantively means that the Authority’s revenue would be used to pay the Government of Kenya’s debt to China Exim Bank if minimum volumes required for consignment are not met as per schedule one.”
“The China Exim bank would become a principal in over KPA if KPC defaults in its obligations and China Exim bank exercise power over the escrow account security,” the said report reads in part.
The Office of the Auditor-General has since disowned the report, saying it wasn’t compiled by Ouko.
That Mombasa- Nairobi SGR is…
That Mombasa- Nairobi SGR is not worth $4 Billion.
It’s not even worth $1 Billion.
The Chinese must think all Kenyans are foolish.
The EXIM Bank is running an international ponzi scheme.
We need secession so that Chinese can enslave Kikuyu and Kalenjin without disturbing us.
This is a Loan benefiting 1%…
This is a Loan benefiting 1% of Kenyans: the Privileged CORRUPT. Shame!!!?
Is the feasibility study…
Is the feasibility study suppose to be done by the lender or by the borrower. Everything being done by our government seems to be upside down. Where is the feasibility study that was done by our government to know how important the SGR was in comparison to the importance of Mombasa port. Didn’t Kenya know if there was need for a railway and whether it can pay for itself? Loss of Mombasa port will be the legacy of the Dynasties. How stupid would Kenya be to loose a port to a railway. Where there is smoke there is fire. Kenyan’s need to form private citizens organizations that will do serious studies on our government actions and expose to the public any deals being made between our leaders and other countries. Our current leaders are mortgaging our children to China in the name of infrastructure. We are being sacrificed at the altar of infrastructure and new this and new that. It’s time for Kenyans of good will to stop leaving their lives in the hands of a few. It’s only China that is talking. Why can’t the government publish the agreement for all stakeholders (Kenyans) to see and decide for themselves. Let Kenya government come clean on this issue and talk to its people (the Kenyans). All those leaders are just talking about their future stomachs (politics) and cannot see the power of the country being eroded by foreign countries.
(China).God give Kenya leaders not politicians. God help Kenya!!
So what’s your point sir?
So what’s your point sir?
@njai, let’s take good care…
@njai, let’s take good care of what we already have (Mombasa Port) than trying to have state of the art infrastructure and loose what is already ours. It’s okay to take two slow steps than to take seven hasty steps forward and fall nine steps behind. Let us be thoughtful in any decisions we make with the outside world. If they say they do research, they are doing it in self interest. So let us do our own research in our interest.
Damage control, bad timing,…
Damage control, bad timing, PR or the truth? Well it should be public information what GoK used as collateral for SGR. Do we need China to clarify this all while GoK is silent? So what was used as a collateral for SGR1, SGR 2 etc?