Posted on 12.27.2018 by Chandana Sirimalwatte in Top News List with 0 Comments
Kenya, is going to lose its Mombasa port to China along the lines of Hambantota port in Sri Lanka, raising apprehensions about the Chinese debt trap.
Kenya could lose the port to the Chinese government if Kenya Railways Corporation defaults in the payment of $2.2 billion owed to Exim Bank of China, ET has learnt. The Kenyan government borrowed the amount to construct the Mombasa-Nairobi standard gauge railway being built by China Roads and Bridges Corporation, a Chinese State-owned company.
A report by Kenya’s auditor general says the payment agreement stipulates that the revenue of the Kenya Ports Authority would be used to clear the debt. Kenya is a key pillar in China’s mega BRI project.