Investigations Launched on Government Deal With Chinese Bank

  • Mombasa Port Citizen Digital
  • Investigations will be launched on why Mombasa Port was allegedly listed as collateral for a loan the government secured from China’s Exim Bank.

    The government secured a loan of Kshs227 billion, of which failure to pay may see China take over Mombasa Port.

    National Assembly Committee chairman Abdullswamad Nassir on Thursday indicated that there would be thorough investigations as to why and how the agreement was signed.

    Mvita MP, Abdulswamad Nassir

    “We want to know how the agreement was signed and on what basis and how much has already been paid,” noted Nassir.

    The Public Investment Committee and the Kenya Ports Authority (KPA) management team will meet to discuss the details surrounding the loan.

    Exim Bank would become a principal owner of the port if Kenya Railways Corporation (KRC) defaults in repaying Ksh227 billion borrowed to build the SGR according to a management letter by the Auditor-General Edward Ouko.

    Members of Parliament have come out to openly dispute the possible transfer of ownership of the public property to the Chinese Government.

    Babu Owino (MP Embakasi East), Justus Kizito (MP Shinyalu) and Paul Katana ( MP Kaloleni), commenting on the matter, affirmed that the committee wouldn't allow the country’s assets to be sold off.

    The committee also has written to the Secretary of Investments to disclose the total amount the government has pumped into all State corporations.

    Standard Gauge Railway (SGR)

    The payment agreement substantively means KPA’s revenue would be used to clear the debt, states the report by the Auditor-General.