Fresh investigations are yet to be lunched next by Kenya’s parliament on how and why Mombasa Port was allegedly listed as a collateral to secure a loan from China’s Exim Bank by the government of Kenya to finance the Prestigious SGR project.
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. https://t.co/FcrNhphBcC #sokonews pic.twitter.com/PbHxBvT4fu
— Virginia Nyambura (@Vnyambura1) February 15, 2019
It’s allegedly said that government of Kenya secured a Kshs227 billion loan to fund the project, of which failure to pay may see China take over Mombasa port like it has done to some countries like Zambia and Sri Lanka who failed to pay China funded loans and their property ended up being confiscated.
Abdull Swamad Nassir the National Assembly Committee Chairman on Thursday confirmed that there would be thorough investigations to probe how and why the agreement was signed at the expense of the country’s biggest port.
“We want to know how the agreement was signed and on what basis and how much has already been paid,” Said Nassir.
Many legislators have since disputed the possible transfer of ownership ofsuch key government property to Chinese Government, the out spoken Embakasi East Mp Babu Owino, MP Shinyalu Justus Kizito all said the committee wouldn’t allow such take overs to own a place in Kenya.
Parliament to investigate if Mombasa Port was used as collateral to acquire chinese loan https://t.co/X7ObaldmC8
— Muhsin (@Muhsinbille) February 15, 2019
The Export-Export (Exim) Bank of Kenya would become a principal owner of Kenya’s largest port if Kenya Railways Corporation (KRC) defaults in repaying the Ksh227 billion borrowed to finance the SGR in regard to a letter by the Auditor-General Edward Ouko.