Kenya risks losing control of the port of Mombasa to China-Auditor General says

Kenya risks losing control of the port of Mombasa to China-Auditor General says

Kenya risks losing control of the port of Mombasa should it default on the Ksh 364Billion SGR loan.

In a reports tabled in parliament, Auditor General Ms. Nancy Gathungu acknowledged that assets of the Kenya Ports Authority were used as collateral to secure the loan used in building Kenya’s largest infrastructure project since independence.

In shocking revelation made for the first time, the Auditor General further revealed that Kenya waived its immunity in the event of a legal dispute arising from default on the loan.

The Star reports that the borrower, Kenya Railways Corporation and Kenya Ports Authority gave up a claim to any immunity from legal proceedings or any of their assets in respect to any cases filed today or in the future in relation to the agreement.

The contents of the SGR contract has been a closely-guarded affair amid concerns that Kenya may have gotten a raw deal.

Further compounding things is the fact that the SGR has failed to break even for the fourth year running with operational costs remaining high against dwindling revenues.

One of the SGR train

Questions have been raised on the viability of the project that was at one point hailed as the key to enhancing connectivity and promoting trade in the region.

The project enjoyed negative publicity shortly after its launch with reports emerging of the huge pay disparity between locals and Chinese nationals who do the same work but earn differently.

Tales of mistreatment and harassment of Kenyan workers also surfaced even as it emerged that KRC had contracted a parallel Africa Star Railways (Afristar), a subsidiary company of China Road and Bridge Corporation, to manage SGR operations and maintenance.

Leave a Reply

Your email address will not be published.