Confirmed: The Port of Mombasa Was Used as Collateral for a Loan from China

By Soko Directory Team / February 15, 2019



debt

It is now clear that the Port of Mombasa was used as collateral by the government of Kenya for a loan it secured from the Exim Bank of China to fund the construction of the Standard Gauge Railway (SGR).

The government had earlier dismissed reports that claimed that the Port of Mombasa had been used as collateral saying that there was no such a thing in the contract between the National Treasury and the Chine’s lender.

President Uhuru Kenyatta, while talking to journalists towards the end of 2018, promised to reveal the contents of the contract to them in a period of one week after the meeting but nothing has been done ever since.

If this turns out to be true, President Kenyatta might have been misled about the contents of the said contract with the sovereignty of the country at stake.

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Public Investments Committee to Meet and Investigate

The National Assembly’s Public Investments Committee is set to meet on Tuesday with officials from the Kenya Ports Authority to get the details on circumstances under which the strategic port was used as collateral.

According to the committee, they intend to ‘get to the bottom of the matter’ so as to ensure the ‘public facility’ is safe.

Kenyans, however, have no faith in the committee said nothing tangible has ever come of such committee inquiries accusing the lawmakers of finding another avenue to get allowances from the taxpayer.

Kenyans are siting inquiries such as those in the contaminated sugar report that never saw the light of the day with members being accused of taking a bribe of as little 10,000 shillings to doctor the findings of the report.

The fact that the contract was signed by the government, and with the government having the majority in the National Assembly, nothing good is likely to come out of it according to some angry Kenyans.

The Auditor General

The Auditor General Edward Ouko, in a management letter, stated that Exim Bank would become a principal owner of the port if Kenya Railways Corporation (KRC) defaults in repaying 227 billion shillings borrowed to build the SGR.



About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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