Auditor: Chinese debt could lead to loss of Mombasa portThe World’s largest cargo vessel MSC Maxine at berthed at no.18 at the Port of Mombasa. [Maarufu Mohamed/Standard]Kenya risks losing the lucrative Mombasa port to China should the country fail to repay huge loans advanced by Chinese lenders.The loans have been granted for the development of the Standard Gauge Railway (SGR). Implications of a takeover would be grave, including the thousands of port workers who would be forced to work under the Chinese lenders. The Auditor General has warned that the eventuality is likely because of a lopsided loan agreement that greatly favours the China Exim Bank, who advanced Kenya the loan. “The China Exim Bank would become a principle in (over) KPA if Kenya Railways Corporation (KRC) defaults in its obligations and China Exim Bank exercise power over the escrow account security,” the audit reads in part.

Source: Standard Digital December 19, 2018 21:04 UTC