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Shock: Uhuru cornered as China set to take over Mombasa port if Treasury fails to pay SGR Loan

Shock: Uhuru cornered as China set to take over Mombasa port if Treasury fails to pay SGR Loan

68 Comments

Everyone is proud to be a Kenyan, but this may turn to be the opposite! The national debts the country owes China are slowly landing the country in problem.

Standard Gauge Railway is in its second phase yet the country has not serviced the loan it took for its construction. The Auditor General Edward Ouko has unveiled a worrying report that has worried Kenyans.

EXIM Bank of China may take over Mombasa port if Kenya fails to service the loan it took to build SGR, as per the report released  by the Auditor-General Edward Ouko

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EXIM BANK of China may take over Mombasa port if Kenya fails to service the loan it took to build SGR, says report by Auditor-General Edward Ouko.

Business Daily in May this year reported that Loan repayments to China will more than triple from July next year as the five-year grace period that Beijing extended to Kenya in May 2014 for the standard gauge railway (SGR) funds comes to an end.

Nairobi will pay Chinese State-owned lenders nearly Sh82.85 billion in the year starting July next year from Sh26.61 billion in the current year ending June, and Sh36.24 billion the following year from July.

Kenya in May 2014 entered into a deal to borrow $3.233 billion loan (Sh324.01 billion) from China’s Exim Bank, comprised of $1.633 billion commercial loan and $1.6 billion concessional to build a 385km modern railway between Mombasa and Nairobi.

The loan, whose interest is 3.6 percentage points above the six months average of London Inter Bank Offered Rate (Libor) which serves as an international benchmark, is to be repaid in 15 years with a grace period of five years.

Comments

  6. This is not a ‘shock’! Every ordinary person in Kenya knew this would be the outcome, Only the leaders thought that somehow or other they would not have to repay the loan. They seem not to know the difference between a ‘loan’ and a ‘gift’. China has said it will take over Africa, and at this rate it will come to pass.

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    • Zambia asked the USA to reverse its ANTI-ZAMBIA/CHINA propaganda mid-December 2018. Why I say propaganda? Because nothing is said about the oversubscribed and highly successful rail system changing Kenya, if not East Africa. This high speed train should have come to Africa from Europe where I travelled in a similar one (120 km/per hour) in 1975).. Infrastructure projects like these do not show profit in 2 to 5 years; both public and private sector Chinese companies are investing in joint-ventures in Kenya to export regionally and worldwide (including China) as Chinese wages have gone up (the double decker freight side of this rail system wonderful investment, as the Chinese appear not to see Africa as a “dark continent”, which is long overdue. The USA has been the biggest debtor consistently for many years. the loans are not for budget support, and KENYA CONTRIBUTE ABOT 30% TO THE DEVELOPMENTAL INVEST MENT.

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  8. Mwalimu the Teacher and President of Tanzania was way ahead in his assessment of where the Chinese railway and stations were going.A ship or two were summoned and the entire Chinese presence was removed and basically deported , call it what you will, back to China.

    Nobody in the Continent seems to have asked why, But he smelt something very strongly and it wasn’t Spicees, he had those.The community of the Chinese were not allowed to fratenize with locals and had to be back in their compound by a certain time. Why.!!

    Anyone found breaking the morals rules….was returned to China or disappeared,

    No lessons were seemingly learnt from this experience and China just moved on to others less weary. So it goes and what is happening in Kenya,Zambia,Z imbabwe, Djibouti …..is no surprise whatsoever,

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  9. For how long has China been controlling the Kenya economy, allowing it to crash the Kenyan economy?? How many projects does China have in Kenya that has enable it to bankrupt the country and take over the Kenyan infrastructure, like the port of Mombasa?

    OR are these stories merely propaganda embellishments being advance by the USA, BRITAIN, EUROPE and their partners which have controlled the Kenyan economy since 1884 Berlin Conference? How much IMF, WORLD BANK and EURO debts does Kenya owe???

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  10. Nothing strange. Greed and ignorance has and is destroying Africa. Bow down before the next chinaman that passes u. He is your Boss. Sit in Mombasa and watch your country float away. Following Kenya is South Africa, Africa must learn, nothing is free.

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  11. The lesson to be learnt by Kenya and Africa is that there is no bank which is a poor man’s friend. The bank will give you a loan if they know that they will get something from you only if it pleases the one who controls them and it does not matter if it is a Chinese, Korean, Brazillian, South African, Indian, Russian Bank, The World Bank, the African Development Bank, Afreximbank, DBSA, aid organisations, etc., they lend money to African governments fully knowing the money will not be repaid so that their controllers can exert influence over the same governments on the world stage including a controlling interest in the way the countries are managed. The OAU was clearly warned by the late Captain Thomas Sankara and what did they do, NOTHING, instead he was killed 3 months after telling them the inconvenient truth. The beneficiaries of banks are the ruling elites on the African governments and not the poor who are used as pawns in the mobilisation of the loans.

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