SHARE

Kenya Could Lose Mombasa Port to China Over Debt

Must Read

Man Named Adolf Hitler Wins Local Election in Namibia

A man called Adolf Hitler Uunona who has been elected as a local councillor for Namibia's governing Swapo party.

Ngozi Okonjo Iweala Named Forbes ‘African Of The Year’

Ngozi Okonjo-Iweala, Nigeria’s former minister of Finance and former Managing Director of the World Bank, has been named the Forbes African of the Year, 2020.

‘Black-ish’ Star Marsai Martin, Breaks Record for Youngest Hollywood Executive Producer

'Black-ish' star Marsai Martin, who's 16, has set a record for the youngest Hollywood executive producer.
SHARE



A leaked audit report says Kenya secured a debt to China using Kenya Ports Authority assets, thus sparking fears that China might take over Mombasa Port if the country defaults.

Kenya Could Lose Mombasa Port to China Over Debt
Image: Safety4sea

Reports from Kenya suggest the country could lose Mombasa Port to China if Kenya Railways Corporation defaults in the payment of a loan from Exim Bank of China. The country used Mombasa port to secure the loan which was taken from the Chinese bank to finance construction of the standard gauge railway (SGR).

A leaked audit report shows that the government waived sovereign immunity on the Kenya Ports Assets on signing the agreement with China thus exposing Kenya Ports Authority to foreclosure by China Exim Bank. Further, the report says, “The agreements are biased since any non-performance or dispute with the China Exim Bank would be referred to arbitration in China, whose fairness in resolving the disagreement may not be guaranteed.”

The agreements also provide that the revenue of the Kenya Ports Authority is to be used to clear the debt. The Kenya Ports Authority management was supposed to submit comments on the leaked report within seven days from the 16th of November 2018 but it is unclear if that has happened.

The Auditor General has however refused to confirm or deny the veracity of the leaked report arguing that, “Any reports that from my office are taken to Parliament. A report picked from the social media is not official.” The Kenyan Cabinet Secretary for Transport and Infrastructure has categorically dismissed the report as untrue, saying, “You know this cannot be true, the idea of waiving a country’s sovereignty. So let’s not dwell on it.”

Related:   We Want Stiffer Sentences — Malawi Media Women Demand Life Sentences for Rapists

The loan is, however, very real and the East African reports that, “Of the Chinese loan for the Mombasa-Nairobi track, a total of Ksh319 billion ($3.2b) was spent directly on railway construction, with Ksh213 billion ($2.1b) going to SGR and the rest of it being used in buying the rolling stock (locomotives and wagons).”

China is said to have also provided raw materials, engineers and rolling stocks for the SGR project while China Communications Construction Company is involved in the SGR cargo and freight business. In short, China is everywhere and the Kenyan government will have great difficulties convincing anyone that China does not have the legal right to take over the port of Mombasa.

It is not out of character for China to go into such lopsided deals and also not out of character for an African government to vehemently deny their existence. Reports that China was about to take over the Zambian power company made the rounds earlier this year and the country again refuted the claims.

Related:   Egypt Detains Photographer after Private Shoot With Dancer at Pyramid

© Africanexponent



Uzonna Anele
Anele is a web developer and a Pan-Africanist who believes bad leadership is the only thing keeping Africa from taking its rightful place in the modern world.

Leave a Reply

Subscribe to receive email updates

With a subscription profile, you automatically receive updates without having to return to the website and check for changes

Just In

Man Named Adolf Hitler Wins Local Election in Namibia

A man called Adolf Hitler Uunona who has been elected as a local councillor for Namibia's governing Swapo party.

Ngozi Okonjo Iweala Named Forbes ‘African Of The Year’

Ngozi Okonjo-Iweala, Nigeria’s former minister of Finance and former Managing Director of the World Bank, has been named the Forbes African of the Year, 2020.

‘Black-ish’ Star Marsai Martin, Breaks Record for Youngest Hollywood Executive Producer

'Black-ish' star Marsai Martin, who's 16, has set a record for the youngest Hollywood executive producer.

Corruption in Africa: Top 10 African Countries With The Lowest Commercial Bribery Risk

The anti-bribery standard-setting organization TRACE has released this year’s Bribery Risk Matrix, which measures business bribery risk in 194 countries, territories, and autonomous and semi-autonomous regions.

African Lip Plates: Culture, History and Symbolism — In Pictures

The lip plate, also known as a lip plug or lip disc, is a form of body modification common in some parts of Africa. The procedure, which involves knocking out the bottom two teeth (sometimes all four), is done at the age of 15-18 and it signifies womanhood.

More Articles Like This