Gov't Dismisses Reports That China Could Seize Mombasa Port over Sh364 Billion Debt
The government through the National Treasury has dispelled reports that China could seize Mombasa Port if Kenya defaults on the Sh364 billion standard gauge railway (SGR) loan.
Treasury Cabinet Secretary Ukur Yatani termed the reports by The Star as misleading and alarmist, adding that such reports could impair Kenya’s relations with development partners and foreign investors.
In an article on Monday, The Star reported that the government used Kenya Ports Authority (KPA) assets as collateral for the Sh363.96 billion loan. The publication cited an Auditor-General report tabled in Parliament.
“The government of Kenya cannot and has not pledged public assets as security for a debt, because such an action would not only violate provisions in its existing loan agreements with other bilateral creditors but more importantly because Kenya treats all its creditors equally,” said CS Yatani.
While insisting that Mombasa Port has no adverse exposure to any lender, Yatani said Kenya will continue to honor its debt repayment obligations to boost its credit standing, attract investment and promote growth and development.
The Treasury further noted that the three loan agreements Kenya signed with the Export-Import Bank of China to finance the SGR project were in line with the Kenyan laws.
“The government through National Treasury is servicing SGR loans in accordance with the provisions of the loan agreements and the Public Finance Management (PFM) Act 2012,” added CS Yatani.
Comments (8)
At this rate, 2050 Chow young-fat will Kenya president. Don’t be surprised if a China man rules this or another African nation.
Pay loan NOTHING for free FREINDS
Ukweli usemwe Uchina itatawala Africa tusipo amka viongozi wetu wamepumbazwa na pesa za wachina
How will Kenya (which corrects shs 4.5b.taxes per day from her limited resources but shs 2b.is looted by Uhuru & Co. gangsters)pay her debts?These thugs loot shs 720b from shs 1.3T.taxation per year.Salaries are shs 500b.which means these thugs take loans to pay loans.The debts payments should be re-negotiated but by a new team as nothing will change with the current leadership.Only a bloody revolution will remove those in power.Kenya hungry billionaires should FORGET ELECTIONS.
so sad, and we still allow this bullshit!
I truly dont believe that the government would tell the truth in such matters of national importance.Can you imagine the treasury cabinet calling the media,and confirming such rumors to the public? If anything he would try to dispel damaging report however credible.
If the government defaults on the loans,yes chinese have the legal seize the assets that comprise the port,but what will they do with them?Manage the port?Just curious.
In the future the govt really needs to envision and create industries that will create wealth for the country. We need many mid to large cap Kenyan companies that will create jobs for kenyans,wealth to shareholders and revenue for KRA.This is the longterm solution to this problem,needless to say.
No free China buffet. You eat you pay. Kenya needs to borrow from its own billionaires like Kenyattas Nyachae GMO etc at a lower rate.