New that China’s Exim Bank might end up taking Kenya’s Mombasa Port should the Kenyan Government default in paying the billions it owes it has surely caused a lot of reactions among Kenyans with many of them calling out the government for what they termed as Poor decision making and misplaced priorities.
A letter by Auditor General to KPA reveals that port’s assets were charged as security to secure loans but KPA did not disclose this guarantee in the financial statements.
Edward Ouko’s office said that KPA assets are exposed since the Authority signed agreement where it has been referred to as borrower under clause 17.5 of the loan agreement and any proceedings against its assets by the lender would not be protected by sovereign immunity.
“The agreements is 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,” reads the auditor’s report signed by F.T Kimani for the Auditor General.
“KPA did not disclose these guarantee in the financial statements,” says the letter.
KPA’s statements of profit and loss and other comprehensive income reflected operating revenue of Sh42,736,520,000 being an increase of Sh3,132,843,00 from Sh39,603,677,00 in the year ended June 30 last year.
China tightened its grip on Kenya’s economy, extending about Sh165 billion in loans last year, latest data shows.
Kenyans have now asked that the Chinese Government let go of the Mombasa Port and instead take control of a number of properties they named. Kenyans have also demanded that relevant documents relating to the construction of the SGR be made public with some calling for the Chinese Government to fully possess the SGR.
The properties and businesses include:
– MediaMax Group
– Heritage Group
– Commercial Bank of Africa
– Weston Hotel
– DP Ruto ‘s Sugoi Palace
– 680 Hotel
– Amaco insurance
Interestingly, the above properties and businesses belong to either President Kenyatta or his deputy William Ruto. Is there a message Kenyans are trying to rely to the Executive?