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. The borrowers – KPA and Kenya Railways Corporation - gave up claim to any immunity from legal proceedings or any of their assets. 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.

Source: The Star March 15, 2021 02:03 UTC