SGR Loan…terms and conditions remain sealed (rumors of Mombasa port as security for the loan). Amount was $3.3 billion. Uhuru personally signed this loan to finance an unviable project. The Chinese knew the project is garbage that’s why they used the port and not the railway as security. Literally, this guy auctioned the port to China because the SGR can’t repay that loan in its current state.
Loan taken - 2013 by Fisi 1
Principle repayments - 2023 when Fisi 1 has exited
He won’t be in power so its not his problem anymore. The timing of repaying that loan is super-suspicious. He knows that the next fisi will inherit a bankrupt country.
Mnalia juu ya tax, it will get worse next year.
If the lender is not willing to use whatever he is financing as security, isn’t that the biggest indication that the project is not viable?? Mtu akichukua loan anunue gari, the bank uses the vehicle as security i.e you co-own the vehicle with the bank. The same goes for mortgages. China did not want to use the SGR as security because it knew that the project was a white elephant. Fisi 1 could not care less because principal repayments begin in 2023.
He’s actually quite right @Azor Ahai . It’s becoming clear everyday that these mega projects were done hurriedly to skim off the top and make that vampire family richer. No way Uhunye didn’t know SGR was a white elephant from the get go. JSKS too was in it think his camp walikua wameahidiwa tender ya kusupply chuma ama simiti but konyagi 1 stiffed them hence the bile. Remember when Alfred Keter caused a furore and was designated enemy number one huko Nandi juu he was rocking the trough when the hyenas were lining up to feed. Of course Pia yeye alikua anataka za macho Tu fronted by akina DL
Kuweni serious and grow some brain. Sasa everything Ndii says must be the truth?
Is the SGR working? Yes
Are all loan repayments happening? Yes
Has Kenya defaulted on any payment? No
Is the SGR generating revenues? Yes
Is KRA collecting revenues? Yes. Infact exceeding targets
As Karua said kwa interview Kenya does not have a revenue issue but has an expenditure issue. If we get fiscal discipline believe you me tuko sawa as a country.
What we should be worried about is hawa watu wanakuja kusema watatenga pesa kupatia hasoras, mara 50B for women, mara 100B for businesses, employ every graduate, etc. This will obviously lead to more fiscal indiscipline and lead us into a deep and dark hole.
Lol. The fact that we are paying off the interest first shows me how China has us by the balls. This agreement was skewed so much in favour of the Chinese. Like who would agree to get into a loan agreement where you pay off the interest first
For the most simple of cases, just assume you borrow $1000 at 10% for 10 years and agree that your total payback will be $2000, the $1000 plus 10% a year for 10 years.
Now when you make payments you might think that since you owe $1000 in principal and $1000 in interest, that your payments will be such that after 5 years, when you have paid $1000, that you will basically owe $500 more dollars, plus $500 more in interest, meaning, that if after 5 years you just paid the lumpsum $500 owed your debt would be square…
Well, not so fast… if the person making the loan says that the first $1000 you pay is only interest, then after 5 years and paying $1000 you still owe the ENTIRE $1000… because that first $1000 was only interest. That means if you want to get out of the loan after five years you need to pay $1000, not merely $500.