Kenya could lose control of her port assets in case she defaults her loans from the Chinese government and Chinese Exim Bank.
This was revealed by the government’s Auditor General Edward Ouko who says that the government used the Kenya Ports Authority assets as security to secure loans, but kept it under wraps in their financial statement.
So EXIM Bank of China wants to take our port?! Mungu saidia! pic.twitter.com/E5OKYiLCuu
— PARKED (@fredrickngumbi) December 19, 2018
Kenyans immediately reminded rebel chanters of the slogan ‘pwani si kenya’ that the statement will finally a reality after Mombasa ports is taken.
Wale watu wa Pwani si Kenya, i hope this is good news for you.
Exim Bank of china
mombasa port— Njeri (@Njeriwakamau4) December 19, 2018
Exim Bank of China might snatch the Port of Mombasa from @HassanAliJoho !
— Jared Mokaya. (@bob_agazee) December 19, 2018
A report by Auditor-General Edward Ouko states that the payment agreement substantively means the revenue of the Kenya Ports Authority would be used to clear the debt.
The audit shows that KPA’s revenue was Sh 42.7 billion as at June 30, 2018, a 7.9 percent increase from the Sh39.6 billion recorded the previous year.
SGR suffered a loss of 10billion in its first year of operation. It’s yet to break even, so it won’t be able to service the loan. Exim Bank of China WILL take over Mombasa Port & there’s nothing you can do about it.
— DrOO•?Follow Help 100K? (@DrooElm) December 19, 2018
Do you agree that pwani will no longer be Kenya?
Ouko further says that the agreement is biased since any non-performance or dispute with the China Exim bank (lender) would be referred to arbitration in China, whose fairness in resolving the disagreement may not be guaranteed.
From Day 1, I refused to be excited about SGR because its Contracts are opaque & clandestine … All the Contracts On & about the SGR Project involving Exim Bank Of China, Kenya Railways & China Road & Bridge Corp ought to be made public … God is Truth .. Truth sets us Free.
— Donald B Kipkorir (@DonaldBKipkorir) December 19, 2018