Don YF
JF-Expert Member
- May 24, 2014
- 10,494
- 9,854
SGR inafika Kampala., weka macho na masikio pia. Naysayers are being proven wrong as time goes by.
Tanzania ama other EA countries r not the reason for this change as haven't defaulted terms! Ethiopia n Kenya r since Ethiopia asked for restructuring of loan terms n repayment time to be extended occassioning $1bn loss to an insurance company that guaranteed the loan i.e. Sinosure while months after Kenya started to pay half of $3.8bln SGR debt, Uhuru asked half of the debt to be given as grant. I don't think section 2B will be financed!
Tanzania ama other EA countries r not the reason for this change as haven't defaulted terms! Ethiopia n Kenya r since Ethiopia asked for restructuring of loan terms n repayment time to be extended occassioning $1bn loss to an insurance company that guaranteed the loan i.e. Sinosure while months after Kenya started to pay half of $3.8bln SGR debt, Uhuru asked half of the debt to be given as grant. I don't think section 2B will be financed!
Wewe mtoto wa kitanga wacha kudanganya watu hapa...Na mbona kaomba half of SGR Mombasa-Nairobi debt to be a grant? A request that resulted into a suspension of issuance of finances for Naivasha-Kisumu n a new feasibility study be called in!
Kuna mtu hapa haelewi kiingereza, ni wapi waliposema kwamba Kenya imeshindwa kulipa deni lake? Hata muda uliowekwa wa kuanza kulipa deni lenyewe bado hujawadia. Tanzania nayo pia imetajwa hapo na inadaiwa hela ndefu na mchina, na deni lake pia litauzwa Hong Kong, ila hilo wewe ambaye sio mtanzania mzalendo huwezi kuliona. Kazi ni copy and paste, wivu na majungu tu dhidi ya Kenya.
SGR inafika Kampala., weka macho na masikio pia. Naysayers are being proven wrong as time goes by.
Kenya never disappoints. By 2022 hii kitu inaingia Kisumu. Alafu watakuja kulialia hapa as usual.
This is true.Imagin trafic ya to and fro coast already imefika 2million, ya Kisumu route to Nai will hit 4 or 4.5 million by that time frame. Watu wengi from western part of Kenya travels compared to watu wa pwani, do you know more than three quarters ya coasterians hawajatoka nje ya coast!
does that make difference if u will start paying in June next year n so far u have already made $110 mln loss in the first year of operation? And whether the grant is on 1.5bln debt or $3.8bln, does that change the fact repayment won't be viable? U r at the moment paying Kshs 26 bln n by June next year the amount will triple!Wewe mtoto wa kitanga wacha kudanganya watu hapa...
1) Ethiopia SGR loan repayment period started in 2016..... They have since got an extension and restructuring of the loan...
2) Kenya SGR payment starts in early 2020..... Kenya has not started paying the SGR debt, it has only been collecting rail levvy and putting it in an escrow account in preparation for 2020 where we are supposed to then pay between $200-$300 million p.a
3) Kenya did NOT ask for half the SGR grant for the Msa-Nrb line which has already been financed, Kenya asked for half of the Naivasha-Kisumu section to be given as a grant.
4) China is not asking for Feasibility study of just Naivasha-Kisumu (which feasibility has not been done), China wants a comprehensive feasibility study for the entire route, including the viability of the project if it terminates at just Kisumu port and if it reaches Kampala. But,This does not mean that the feasibility study has to start from scratcch, it means that those feasibility studies for each section(phase) will be relied upon, then all combined into one comprehensive document that coveres the whole route, unlike currently where feasibility documents are only for specific phases...
Eti at the moment we are paying $26 bln for the SGR and that will tripple.... Is that what you are saying?????does that make difference if u will start paying in June next year n so far u have already made $110 mln loss in the first year of operation? And whether the grant is on 1.5bln debt or $3.8bln, does that change the fact repayment won't be viable? U r at the moment paying $26 bln n by June next year the amount will triple!
SGR loan payments to triple to Sh83bn next year
Loan repayments to China will triple from July next year as the five-year grace period that Beijing extended to Kenya in May 2014 for SGR funds comes to an end.
Past construction works of the standard gauge railway. FILE PHOTO | NMG
By CONSTANT MUNDA
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IN SUMMARY
- Kenya in May 2014 entered into a deal to borrow $3.233 billion loan (Sh324.01 billion) from China’s Exim Bank, comprised of $1.633 billion commercial loan and $1.6 billion concessional to build a 385km modern railway between Mombasa and Nairobi.
- The loan, whose interest is 3.6 percentage points above the six months average of London Inter Bank Offered Rate (Libor) which serves as an international benchmark, is to be repaid in 15 years with a grace period of five years.
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Loan repayments to China will more than triple from July next year as the five-year grace period that Beijing extended to Kenya in May 2014 for the standard gauge railway (SGR) funds comes to an end, Treasury data shows.
Nairobi will pay Chinese State-owned lenders nearly Sh82.85 billion in the year starting July next year from Sh26.61 billion in the current year ending June, and Sh36.24 billion the following year from July.
Kenya in May 2014 entered into a deal to borrow $3.233 billion loan (Sh324.01 billion) from China’s Exim Bank, comprised of $1.633 billion commercial loan and $1.6 billion concessional to build a 385km modern railway between Mombasa and Nairobi.
The loan, whose interest is 3.6 percentage points above the six months average of London Inter Bank Offered Rate (Libor) which serves as an international benchmark, is to be repaid in 15 years with a grace period of five years.
Treasury data tabled in the National Assembly last Wednesday shows principal payments to Exim Bank of China — the main SGR financier — will shoot to nearly Sh34.8 billion in the financial year 2019/20 from Sh6.07 billion this fiscal year, and Sh8.39 billion in 2018-19.
READ: China takes up lion’s share of debt spend
Debt redemption to China Development Bank, another key financier of Kenya’s infrastructure projects, will surge to Sh18.27 billion in 2019/20 from Sh757.76 million this year and Sh1.68 billion in the year which starts in July.
President Uhuru Kenyatta’s administration has largely contracted debt from China since 2014 to build much-needed roads, bridges, power plants and the SGR.
This started after Kenya became a lower middle income economy, locking her out of highly concessional loans from development lenders such the World Bank Group.
China’s influence on the country’s infrastructure development, however, started in earnest with construction of the Thika Superhighway between January 2009 and November 2012 at a cost of nearly Sh32 billion during the last term of President Mwai Kibaki.
The deal to fund the first phase of the SGR, Kenya’s single largest infrastructure project by cost since independence, saw Beijing overtake Tokyo as Kenya’s largest bilateral lender.
Construction of the Mombasa-Nairobi SGR cost about Sh692 million per kilometre (km), while the $1.5 billion for the extension to Naivasha is estimated at about Sh1.28 billion per km.
READ: China remains Kenya’s top lender at Sh520bn
Passenger fares on the SGR are set to rise to Sh1,000 a seat, from the promotional Sh700 during the launch last June, to help cover the costs of the SGR line operated by China Communications Construction Company.
Debt repayments (Sh82.85 billion) to Beijing will account for a third of the Sh274.24 billion that Kenyan projects will be due to foreign lenders in 2019-20.
This will rise to nearly Sh95.2 billion in 2020-21 and Sh120.12 billion in 2021-22, assuming the debt obligations to Beijing will remain constant even with contraction of new loans from Beijing, the Treasury data shows.
READ: Kenya dismisses US concerns over mounting Chinese loans
China’s debt stock to Nairobi has since surged nearly two and a half times to $5.2 billion (Sh521.38 billion) by last December from $2.22 billion (Sh222.60 billion) in January, dethroning the World Bank Group as Kenya’s largest lender.
Consultancy Deloitte said in the Africa Construction Trends Report 2017, released in Nairobi last February , that China was the “most prolific funder of large-scale” projects, building one in four projects in East Africa.
Kshs 26bln n in June next year u will pay Kshs 82blnEti at the moment we are paying $26 bln for the SGR and that will tripple.... Is that what you are saying?????
Imagin trafic ya to and fro coast already imefika 2million, ya Kisumu route to Nai will hit 4 or 4.5 million by that time frame. Watu wengi from western part of Kenya travels compared to watu wa pwani, do you know more than three quarters ya coasterians hawajatoka nje ya coast!
Umeconfuse, Lakini nitamlaumu mwandishi ambaye hakutofautisha.... China funds lots of projects in Kenya totaling approx $6B, these loans that we are paying currently are not for the SGR but for the other loan funded projects........ As for the SGR loan, this following line tells you all you need to know " is to be repaid in 15 years with a grace period of five years. " The Loan was given in October 2014, the grace period before we start paying the debt is five years so thats 2015,16,17,18,2019 (October) ....... The same time frame I mentioned (Early 2020)Kshs 26bln n in June next year u will pay Kshs 82bln
hamna kitu kama hicho hela si za babako, debt repayment obligations start next year!Umeconfuse, Lakini nitamlaumu mwandishi ambaye hakutofautisha.... China funds lots of projects in Kenya totaling approx $6B, these loans that we are paying currently are not for the SGR but for the other loan funded projects........ As for the SGR loan, this following line tells you all you need to know " is to be repaid in 15 years with a grace period of five years. " The Loan was given in October 2014, the grace period before we start paying the debt is five years so thats 2015,16,17,18,2019 (October) ....... The same time frame I mentioned (Early 2020)
You are just arguing semantics for the sake of arguments October 2019 and Early 2020 are two months apart!hamna kitu kama hicho hela si za babako, debt repayment obligations start next year!
#Loan repayments to China will more than triple from July next year as the five-year grace period that Beijing extended to Kenya in May 2014 for the standard gauge railway (SGR) funds comes to an end, Treasury data shows.#
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July 2019 Banana republic starts paying Kshs 82 bln to Chinese! And that if China decide to not sell ur debt to Hong Kong banks!You are just arguing semantics for the sake of arguments October 2019 and Early 2020 are two months apart!
JUly 2019 haiko mbali, Save a screenshot unionyeshe ikifika hio July 2019, unionyeshe wapi itaandikwa ni loan repayment ya SGRJuly 2019 u start paying Kshs 82 bln to Chinese!
No country in this world can lend us over $3.8bln n repayment start after 15 years!JUly 2019 haiko mbali, Save a screenshot unionyeshe ikifika hio July 2019, unionyeshe wapi itaandikwa ni loan repayment ya SGR