[SIZE=5]Just a few years ago the likes of @spear, @MortyTuumbo , @MjamaaPittsburgh and many others would get very worked up defending Jubilee projects.[/SIZE]
[SIZE=5]Anyone with two eyes like @Half_Human could easily tell that with such massive borrowing Gathecha was risking Mombasa Port going the Pakistan or Sri Lanka route. Both countries lost sea ports to China.[/SIZE]
[SIZE=5]Now the chickens have finally started coming home to the proverbial roost. [/SIZE]
[SIZE=7]China could seize Mombasa port over Sh364bn SGR loan[/SIZE]
[SIZE=5]Auditor reveals Kenya Ports Authority assets are attached as security for China Exim Bank loan.[/SIZE]
In Summary
[ul]
[li]KPA is referred to as the borrower, contrary to details that KPA’s only obligation was to facilitate or rather guarantee minimum freight volumes.[/li][li]The borrowers – KPA and Kenya Railways Corporation - gave up claim to any immunity from legal proceedings or any of their assets.[/li][/ul] by MOSES ODHIAMBOPolitical Writer
https://lh3.googleusercontent.com/DVvkUWIJuf976D93pSewZu5cehIwR-2cW4XUnzNr8DMhlSIDU3EQ8pY_Juv5xwuO0wnDGCtfRfaSLaxTOSmBR5FheahnqA=s512 BUSY: Containers at the Port of Mombasa .
Image: JOHN CHESOLI
The port of Mombasa could be under the control of the Chinese if the government defaults on the Sh364 billion SGR loan.
The Auditor General reveals that the assets of Kenya Ports Authority were used as collateral for the Sh363.96 billion Standard Gauge Railway loan.
In a report tabled in Parliament, the Auditor General reveals officially for the first time that Kenya waived its immunity in the event of a legal dispute linked to default of servicing the loan.
The borrowers – KPA and Kenya Railways Corporation - gave up claim to any immunity from legal proceedings or any of their assets.
This would be in respect of any cases filed today or in future in connection with the agreement.
“Under this clause (17.5) the borrowers – KPA and KRC - agree that any proceedings against them or their assets in connection with the agreement, no immunity from such proceedings shall be claimed by it or with respect to its assets.
“…and they irrevocably waive any right of immunity whether characterised as sovereign immunity or otherwise,” the report, which has just surfaced despite being signed by former Auditor General Edward Ouko in April 2019, reads.
In what brings the risk closer to home, KPA is referred to as the borrower, contrary to details that KPA’s only obligation was to facilitate or rather guarantee minimum freight volumes.
This means a default on the part of Kenya in respect of the SGR loans would see the country surrender KPA assets, the main one being the Mombasa port.
“KPA assets are exposed to the risk of takeover by the lender since the authority signed the payment arrangement agreement,” the audit reads.
Also troubling, the auditor pointed out, is that “KPA shall make good any shortfall arising either on account of failure to reach the minimum volume of cargo.”
It will be required to pay Kenya Railways “such an amount as is required to make good the shortfall within a period of 30 days after completion of reconciliation.”
“In the event that KRC defaults to pay China Exim Bank freight and service charges, KPA would be compelled to deposit the amount due to KRC to a bank account designated by the Exim Bank.”
The auditor decried that the two agreements in respect of the SGR loan from the Export Import Bank of China signed in November 2014 were not provided for audit review.
The repayment of the principal and payment of the interest and fees on loans are to be secured by the long-term service agreement.
Nothing wrong with an advanced civilisation taking advantage of some greedy dark skinned low IQ bonobos . The primary objective was to get the 10 % cut hio ingine ilikua smoke screen .
that’s small amount, Kenya will repay the loan. Kenya is not known for loan defaulting and that’s why more come in despite hearing the news of the country having huge debt.
Kweli you are from the mountain! Acha Mt. Kenya iwe attached as collateral ndio utasikia national heritage, cultural sites and sovereignty in same sentences. Anyway pwani si kenya
how can mt. Kenya be attached as collateral, how can they estimate its value. what I maintain is that haters are waiting for Kenya to default so that they can release their orgasm but watangonja hadi wakufe
It is not the “price” of Mt. Kenya or Mombasa port itself that China would be interested in but the revenue they can derive from Mt. Kenya or Pwani port to repay the loan.
Like @erson has pointed out the Pwani Port is of cultural importance to the Pwani people and of course they will ask, “Mbona mli attach port yetu bali sio Mt Kenya yenu ama Lake Victoria etc?”
Because yes indeed the Chinese will take over that port sio jokes. You will see their navy in Mombasa protecting the port juu ni yao. Ni Chinese territory with Chinese police and navy patrolling the place.
Obado alone has stashed 2.5B abroad. Arrorr 22B dam cash. The slay queen Ms Anyango was juzi paid 1.4B kemsa cash. So how can we fail to pay a small 360B loan?
i bet to chop my testicles if such a time comes. at what time (years) do you see the chinese taking over the port and deploying their navy? so that if it does not happen promise to chop off your testicles and display then on “Kenyatalk Live”
[SIZE=5]As you fondle your testicles , the Chinese already started technical preparations two years ago! Yaani kukagua mali yao.[/SIZE]
[SIZE=7]Chinese navy ship Weifang docked in Kenya[/SIZE] Source: Xinhua| 2019-12-08 21:23:05|
Chinese missile frigate Weifang is seen at the port of Mombasa, Kenya, Dec. 8, 2019.
The missile frigate Weifang from the 33rd escort fleet of the Chinese People’s Liberation Army (PLA) Navy arrived at the port of Mombasa, Kenya for technical docking Sunday morning. (Xinhua/Li Yan)
MOMBASA, Kenya, Dec. 8 (Xinhua) – The missile frigate Weifang from the 33rd escort fleet of the Chinese People’s Liberation Army (PLA) Navy arrived at the port of Mombasa, Kenya for technical docking Sunday morning.
The Weifang ship left the port city of Qingdao in east China’s Shandong Province on August 29 for the Gulf of Aden and the waters of Somalia to carry out the 33rd escort mission.
The ship successfully completed the China-Russia-South Africa maritime joint mission in South Africa from November 24 to 29.
The ship was welcomed Sunday morning by more than 200 Chinese, including Chinese ambassador to Kenya Wu Peng. It will carry out material supply and equipment maintenance during the docking.
just a normal docking for maintenance as it was journeying back to China, it had also docked in South Africa. Nothing related to Chinese interests in Kenya. give me tangible evidence
The Kenya govt is falling behind on it’s SGR debt repayment each and every year. What more proof do you need?
Worse still the SGR is a MAJOR loss making venture. In the 3 years of operation the SGR made losses of a staggering kshs 21 billion!
In short the SGR cannot sustain itself and it cannot repay it’s own debt. So who or how do you expect Kenya to repay the kshs 364 billion debt whereas the project is a loss making monstrosity?
The only way SGR can make economic sense plus some good revenue is if it had reached Kampala or better still Kigali! Such that a lot of the goods would use the SGR.
Sijui kama unaelewa? As it stands it is a white elephant and the govt has to discard it “cleverly”. How ?
By letting China take over the port for 50 years… or forever. Wajilipe loan yao na hio port.
I disagree with you totally. Yes SGR was grossly inflated but lets changanua the facts:
SGR is currently operational and making income (albeit at a loss). This means that it has a client base, has a management structure, has an accounting system, has an auditing office, etc.
The govt (by extension KR) is able to absorb the losses incurred by SGR. Nilisoma somewhere the operational losses are about 1B per month and a total of 21B loss for 3 years (2016-2019). Despite the losses the revenues have steadily increased over the years and they actually launched double containers. In addittion the local chinese company operating the SGR will handover the operations soon to KR and this will significantly cut down OPEX.
These and many other factors make SGR not to be a white elephant project. The fact that KPA makes significant revenue also makes it certain that the govt (ata ya Arror) will not allow such a vital infrastructure to fall into the hands of foreigners.
Have you ever read about KQ. The government absorbs the annual losses. But who pays. Rembember they absorbed Uchumi losses until it was time to let go. The government cant even pay for its bills at the moment. Right now we are borrowing from the IMF, which means, we are running out of resources to borrow. You cant borrow forever, something has to give.
SGR will serve Kenya for the next >100yrs and so drawing balance sheets at Yr2 and condemning the project doesnt make much sense. Many businesses need about 5yrs to break even.
Also just like the mombasa - nairobi road the SGR is not there to make a profit rather to facilitate movement of people and goods. A country MUST have public infrastructure like roads, railways and airports, water, sewerage etc maintained by tax payers and such infrastructure making profits is just an added advantage.
If you are bleeding a whole billion every month , YOU QUIT WHILE YOU ARE AHEAD AND RUN FOR THE HILLS!!
[COLOR=rgb(184, 49, 47)]The whole of last year there was Covid19 so how in the world did SGR revenues improve???
They weren’t transporting people or goods yet the Chinaman wants his money. Remember that this is a commercial freight train and not a light rail passenger train for transporting people.
This was a train meant to carry goods across countries and regions.
[COLOR=rgb(184, 49, 47)]When???
Kshs. 364 billion bado haijalipwa. Interest on the loan bado haijalipwa!
KR management killed the lunatic express. Running a railway line has always been a loss making venture. The SGR is bleeding a whole b a month…
[COLOR=rgb(184, 49, 47)]China doesn’t care. That is not China’s problem mkishindwa kulipa.
Hata wewe ukipewa pesa na bank they won’t care whether you are the President or not, they will demand their pound of flesh! Kukopa harusi, kulipa matanga.
[COLOR=rgb(184, 49, 47)]na bado unaona hope hapo?