Kenya is at risk of losing losing the port of Mombasa to Chinese lenders if it defaults on $3.2bn loans that were used to fund the development of the country’s Standard Gauge Railway, according to reporting by the Kenya Star.
Kenya’s Finance Secretary, Ukur Yattani Kanacho, countered The Star report claiming that “there is absolutely no risk of China or any other country taking over the port.”
Yatani stated that $3.2bn loans for the railway project cannot “be paid through any other fund or any other entity without the approval of parliament,” because they are part of the public debt paid through the consolidated fund.
“The government of Kenya cannot and has not pledged public assets as security for a debt because such an action… only violates provisions of its existing loans agreements,” Yatani said.
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