Friday, August 14, 2020

Kenya’s Mombasa port risks Chinese takeover

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Fred Dzakpata
Fred Dzakpata is a Ghanaian journalist who specializes in business reporting in Africa.
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China is likely to takeover Kenya’s port of Mombasa if the East African country defaults on loans from China’s Exim Bank.

That’s the warning from Kenya’s Auditor General in a report authored for him by F.T. Kimani.

Africafeeds.com understands the port has been used as collateral as part of terms for the $2.3 billion loan for Kenya Railways Corporation.

The facility taken by Kenya is to enable it build Mombasa – Nairobi Standard Gauge Railway (SGR ), with construction services provided by China Roads and Bridges Corporation (CRBC), a division of state-owned conglomerate China Communications Construction Company (CCCC).

The SGR, also known as the Madaraka Express, is a diesel-powered passenger and freight rail service connecting Nairobi and Mombasa.

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Its construction was plagued by cost overruns, and outside observers have questioned its economic viability. 80 percent of the project was financed by China.

Beneath is a copy of leaked audit report.


The Auditor General Edward Ouko has however refuted the story in a tweet.


In December 2017, Sri Lanka handed control of the newly-built port of Hambantota to a Chinese operator in order to satisfy part of its significant debt to Chinese lenders.

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Most African countries are indebted to China with fears those debts are becoming a burden for their economies.

 

 

Source: Africafeeds.com

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