SGR pact with China a risk to Kenyan sovereignty, assets

The standard gauge railway project. Its construction was funded by China. PHOTO | FILE | NATION MEDIA GROUP

What you need to know:

  • The Chinese have repeatedly rejected accusations that they were involved in debt-trap diplomacy by burdening poor countries with unsustainable loans.
  • Daly and Inadmar Advocates partner Shitul Shah said lending countries only ask for collateral when they have questions on the “credibility” of the borrower.
  • Auditor-General Edward Ouko is yet to release any report on the SGR as required by law for a project of such magnitude.

Kenya’s key strategic assets at home and abroad will not be protected by “sovereignty” and risk being seized by the Chinese government should there be a default in repaying the Standard Gauge Railway loan, a copy of the contract seen by the Sunday Nation reveals.

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