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Explain KPA link to SGR loan, State told

Just a day after it emerged that the Port of Mombasa had been used as collateral for Sh326 billion loan from China’s Exim Bank to fund the construction of the Standard Gauge Railway(SGR), a civil society group has demanded that details of the agreement  be made public.

Muslims for Human Rights (Muhuri) has further demanded that officials behind the deal be investigated. Chairman Khelef Khalifa said Cabinet secretaries, the Attorney General and Kenya Ports Authority (KPA) management must explain how the deal was arived at.

This is after it emerged that Auditor General Edward Ouko had written to KPA managing director raising concerns that the Port of Mombasa was at risk of being taken over by the Chinese if Kenya fails to repay the loan.

According to the letter dated November 16, KPA is indicated as the borrower of the loan thus exposing its assets, including the port, to seizure in case the loan is not repaid. The auditor said KPA failed to disclose this guarantee in its financial statements.

“Every person who appended signature or influenced the deal must be investigated, starting with the Cabinet secretary for Transport, the Attorney General and KPA managing director,” wrote Khalifa on his facebook page yesterday.

He said Kenyans ought to have been informed on what the deal entails. “Muhuri is in possession of a letter from the Transport CS James Macharia to KPA MD directing him to issue guarantee to Exim Bank,” he said.

Mijikenda community council of elders chair Vincent Mwachiro asked government not to fail in its loan obligations to avoid a situation where KPA is seized.

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