A STATE SECRET
By Carlos Mureithi
East Africa correspondent
Published January 20, 2022
Kenya has declined to make public the loan contracts for its Chinese-built railway in response to a court petition by two activists, saying they have non-disclosure clauses and that releasing them would amount to breaching a bilateral agreement, impairing relations between Kenya and China. This sheds light on the secrecy surrounding Chinese deals with developing countries, which experts say complicates debt renegotiation.
The news is according to an affidavit by public works principal secretary Solomon Kitungu that also states that releasing the documents will undermine Kenya’s national security, “since terms in the contract touch on foreign government information with implications on national security and foreign relations.”
The 453-mile track connects the country’s capital, Nairobi, with the port city of Mombasa and the Rift Valley town of Naivasha. Construction began in 2014, with the primary contractor being the China Road & Bridge Corporation (CRBC) and most of the funding coming in form of loans from the Export-Import Bank of China.
Passenger and cargo trains operate on the SGR, with passengers welcoming it for reducing travel time when compared to using buses, but cargo owners are avoiding it for reasons including higher fees and more time in clearing goods when compared to using trucks.
Critics worry about its debt burden on Kenya, its financial viability, and environmental impact. The Africa Star Railway Operation company, a CRBC subsidiary that operates the railway’s passenger and cargo service, has never made a profit in the four years of the SGR’s operation and Kenyan taxpayers have had to fill the gap to sustain the company’s operations
Kenya is refusing to release the loan contracts for its Chinese-built railway
By Carlos Mureithi
East Africa correspondent
Published January 20, 2022
Kenya has declined to make public the loan contracts for its Chinese-built railway in response to a court petition by two activists, saying they have non-disclosure clauses and that releasing them would amount to breaching a bilateral agreement, impairing relations between Kenya and China. This sheds light on the secrecy surrounding Chinese deals with developing countries, which experts say complicates debt renegotiation.
The news is according to an affidavit by public works principal secretary Solomon Kitungu that also states that releasing the documents will undermine Kenya’s national security, “since terms in the contract touch on foreign government information with implications on national security and foreign relations.”
The SGR is Kenya’s most expensive infrastructure project and faces criticism
Built at a cost of more than $4.7 billion, the standard-gauge railway (SGR) is Kenya’s most expensive infrastructure project. Since its inception, the project has been marred by accusations of being overpriced and damaging to the environment. It’s also been criticized for being highly unprofitable.The 453-mile track connects the country’s capital, Nairobi, with the port city of Mombasa and the Rift Valley town of Naivasha. Construction began in 2014, with the primary contractor being the China Road & Bridge Corporation (CRBC) and most of the funding coming in form of loans from the Export-Import Bank of China.
Passenger and cargo trains operate on the SGR, with passengers welcoming it for reducing travel time when compared to using buses, but cargo owners are avoiding it for reasons including higher fees and more time in clearing goods when compared to using trucks.
Critics worry about its debt burden on Kenya, its financial viability, and environmental impact. The Africa Star Railway Operation company, a CRBC subsidiary that operates the railway’s passenger and cargo service, has never made a profit in the four years of the SGR’s operation and Kenyan taxpayers have had to fill the gap to sustain the company’s operations
