It has now emerged that the government has used assets of eight key State corporations as collateral to secure loans amounting to Sh147 billion.
This has been revealed in a document presented in the National Assembly by the Parliamentary Budget Office on Thursday.
This means that the corporations risk seizure by lenders should Kenya fail to service the loans as agreed.
The Standard reports that the eight State companies include Kenya Airways (KQ), Kenya Airports Authority (KAA), Kenya Railways, Kenya Electricity Generating Company (KenGen) and Kenya Power.
Others are East African Portland Cement, Tana and Athi Rivers Development Authority, and Kenya Broadcasting Corporation (KBC).
Kenya Power was used to guarantee a loan of Sh14 billion, Kengen (Sh10 billion), Kenya Airways (Sh76 billion), KBC (Sh6 billion) and Kenya Railways (Sh4 billion.)
This comes as President Kenyatta traveled to China this week to secure a Sh368 billion loan for the extension of the Standard Gauge Railway (SGR) from Naivasha to Kisumu.
MPs led by Emgwen’s Alex Kosgey have proposed amendments to the law to regulate government borrowing.
The MPs have raised concerns over the country’s huge public debt, which currently stands at 5.6 trillion.
“We cannot allow this situation whereby the Treasury or the Presidency or anyone can just decide today that they want to borrow this much yet we have already overburdened the common mwananchi,” says Sigowet-Soin MP Kipsengeret Koros.
Mathira MP Rigathi Gachagua says: “Let us be careful that we don’t sign an agreement that will make us slaves to foreigners; that will enslave us for 30-40 years.”
China will seize all these…
China will seize all these assets when the time comes. The boy in statehouse can’t even get China to lend him money for the SGR extension as there are no assets to mortgage. What a shame. Arrogance and ignorance personified.
Why are you this crazy with…
Why are you this crazy with China? The report just states of loans, but doesn’t provide the source. Where did you get China from. FYI every major company, every stable country has a loan.
Loans do Destabilize many…
Loans do Destabilize many Stable countries when the Common man (the Taxpayer) gets tired of Paying the Loans and begins to REVOLT.
China is the only country…
China is the only country that loans money for a project then wants as collateral an asset that is totally separate from the project.
When Uhuraila travelled to…
When Uhuraila travelled to China, did they make a public announcement that they were going there to secure loans or where did Kenyans get this information from.
How many of those will be…
How many of those will be taken over by the Kenyatta family? Where have these MPs been all this time when this was going on? Kenya as we know it has been morgaged.
My 12 year old daughter…
My 12 year old daughter tells me that why dont they print 147 billion shillings and carry it to China,without letting it circulated in our economy thus causing inflation,in Kenya.MMMmmmmmm.Smart girl.Ithink Idi Amin tried that with minimal success, we might just be lucky…
Invest in Kenya companies &…
Invest in Kenya companies & institutions at your own risk! Not even gov’t treasuries or bonds are safe anymore! If you’re unwilling to service the gov’t loans as seen in the failed housing projects,the gov’t still has access to your bank accounts! We became slaves of China long time ago it’s only the transition which is slow!
Hehehehe can i remind my…
Hehehehe can i remind my fellow americans kenyans refugees diasporas that walk around yr house n see 99% of yr clothes,sofasets,utensils underwear’s panties r all made from china.The usa owes chinese more than 10 trillions $$$.It is said that maxiely yr 12 year old daughter her children n their children’s owe chinsese trillions n remember wako na mko na mamogages za 30 years zenye haziishi??So guys slow dwn n embrace the next supa powers china/india.We will celebrate usa fall from supa powers the way they celebrates ussr fall.I love to live in reality n soon china will b supa powers.