China's African debt-trap: Beijing prepares to seize Kenya's port of Mombasa
Nairobi fails to repay massive debts on shady loan for underperforming railway, Kenyan infrastructure ripe for the taking: reports
214152
By Duncan DeAeth,Taiwan News, Staff Writer
2018/12/27 17:53
File Photo: Kenyan Pres. Uhuru Kenyatta and Xi Jinping, 2013
File Photo: Kenyan Pres. Uhuru Kenyatta and Xi Jinping, 2013 (By Associated Press)

TAIPEI (Taiwan News) – China may be preparing to seize some major assets in the African nation of Kenya, as a result of debt-trap diplomacy.

African media reports that Kenya may soon be forced to relinquish control of its largest and most lucrative port in Mombasa to Chinese control.

Other assets related to the inland shipment of goods from the port, including the Inland Container Depot in Nairobi, and the Standard Gauge Railway (SGR), may also be compromised in the event of a Chinese port takeover.

Kenya has reportedly taken extremely large loans from the Communist government for the development of some major highways, and especially for the SGR, which forms a crucial transport link to and from Nairobi for the import and export of goods through Mombasa.

In November, Moody’s noted that Kenya is at high risk of losing strategic assets because of debts owed to Beijing.

Local media began to express concern that Chinese lenders may be angling to seize assets, since it does not appear the Kenyan government will be capable to repaying the loans.

Now, one month later, ahead of the New Year, it’s been reported that the Chinese may be preparing to take over the Mombasa Port infrastructure soon.

The African Stand also seems to suggest that the SGR, which is operated by the Chinese, may have been designed to be a “loss-making venture.”

With a reported loss of KES 10 billion (US$98 million) in its first year of operation, it would be nearly impossible to repay the loans taken for its construction in the time requested. Kenya reportedly accepted loans of KES 500 billion (US$4.9 billion) for the SGR’s construction.


Kenya's Standard Guage Railway linking Mombasa to Nairobi (Associated Press Photo)

Kenya’s Auditor General reportedly stated that deal has always favored the China Exim Bank, which advanced the loan for the project. Further, Kenya signed on to a deal that requires any arbitration of disputes related to the debt must take place in China.

From the African Stand.

An audit completed last month indicates that Kenya Ports Authority’s (KPA) assets, which include the Mombasa port, could be taken over if the SGR does not generate enough cash to pay off the debts.

“The China Exim Bank would become a principle in (over) KPA if Kenya Railways Corporation (KRC) defaults in its obligations and China Exim Bank exercise power over the escrow account security.”

When the Chinese lender granted the loan to the Kenyan government, somehow the KPA signed on as a borrower. Somehow Kenya's government agreed that the port “would not be protected by sovereign immunity since the Government waived the immunity on the Kenya Ports Assets" by virtue of KPA signing on as a borrower, according to the Auditor General.

It is becoming increasingly clear that China’s designs on the nations of Africa are anything but benevolent. Kenya appears to be lining up behind Zambia, which is slated to lose its international airport, as well as its national electricity grid because of defaults on Chinese loans.

African nations must wake up to China’s new form of colonialism that is chipping away at their critical infrastructure one major asset at a time

Let them seize it first now....

After all....

AGREEMENT IS AGREEMENT.

Can China just come and seize Nigeria away from this stupid polithiefians we have here.

They should come and seize PHCN.

I just hope our dullard here hasn't signed any if those agreement.

There is no free lunch. Nigeria should tread carefully with China or they could be the next victims. Our oil assets could be seized

Source or .......

Fake news please . Chinese embassy Nairobi already debunked that news

My only question is which agreement our own government sign with China loan and collateral use for the backup

Nigerian s can't spot fake news?

China should come and seize naija biko

quickly:
China's African debt-trap: Beijing prepares to seize Kenya's port of Mombasa
Nairobi fails to repay massive debts on shady loan for underperforming railway, Kenyan infrastructure ripe for the taking: reports
214152
By Duncan DeAeth,Taiwan News, Staff Writer
2018/12/27 17:53
File Photo: Kenyan Pres. Uhuru Kenyatta and Xi Jinping, 2013
File Photo: Kenyan Pres. Uhuru Kenyatta and Xi Jinping, 2013 (By Associated Press)

TAIPEI (Taiwan News) – China may be preparing to seize some major assets in the African nation of Kenya, as a result of debt-trap diplomacy.

African media reports that Kenya may soon be forced to relinquish control of its largest and most lucrative port in Mombasa to Chinese control.

Other assets related to the inland shipment of goods from the port, including the Inland Container Depot in Nairobi, and the Standard Gauge Railway (SGR), may also be compromised in the event of a Chinese port takeover.

Kenya has reportedly taken extremely large loans from the Communist government for the development of some major highways, and especially for the SGR, which forms a crucial transport link to and from Nairobi for the import and export of goods through Mombasa.

In November, Moody’s noted that Kenya is at high risk of losing strategic assets because of debts owed to Beijing.

Local media began to express concern that Chinese lenders may be angling to seize assets, since it does not appear the Kenyan government will be capable to repaying the loans.

Now, one month later, ahead of the New Year, it’s been reported that the Chinese may be preparing to take over the Mombasa Port infrastructure soon.

The African Stand also seems to suggest that the SGR, which is operated by the Chinese, may have been designed to be a “loss-making venture.”

With a reported loss of KES 10 billion (US$98 million) in its first year of operation, it would be nearly impossible to repay the loans taken for its construction in the time requested. Kenya reportedly accepted loans of KES 500 billion (US$4.9 billion) for the SGR’s construction.


Kenya's Standard Guage Railway linking Mombasa to Nairobi (Associated Press Photo)

Kenya’s Auditor General reportedly stated that deal has always favored the China Exim Bank, which advanced the loan for the project. Further, Kenya signed on to a deal that requires any arbitration of disputes related to the debt must take place in China.

From the African Stand.

An audit completed last month indicates that Kenya Ports Authority’s (KPA) assets, which include the Mombasa port, could be taken over if the SGR does not generate enough cash to pay off the debts.

“The China Exim Bank would become a principle in (over) KPA if Kenya Railways Corporation (KRC) defaults in its obligations and China Exim Bank exercise power over the escrow account security.”

When the Chinese lender granted the loan to the Kenyan government, somehow the KPA signed on as a borrower. Somehow Kenya's government agreed that the port “would not be protected by sovereign immunity since the Government waived the immunity on the Kenya Ports Assets" by virtue of KPA signing on as a borrower, according to the Auditor General.

It is becoming increasingly clear that China’s designs on the nations of Africa are anything but benevolent. Kenya appears to be lining up behind Zambia, which is slated to lose its international airport, as well as its national electricity grid because of defaults on Chinese loans.

African nations must wake up to China’s new form of colonialism that is chipping away at their critical infrastructure one major asset at a time

Soon Africa is going to be a Chinese colony, with some of the most poweful African nations already owing huge debts to China [url]Top 10 African countries with highest Chinese debt[/url]https://exposeke.com/top-10-african-countries-with-highest-chinese-debt/

Give out large loans to countries they know can’t pay back with corrupt politicians who will steal the money, collect back the debt by owning their resources. Wash, rinse, repeat

What if they refuse the take over, will they take over by force or declare war on them because of debt?

No wise country would sign anything with Fg of Nigeria when they know Nigeria is a fraud operating on burrowed time. All the infrastructures feeding Nigeria in Yoruba land will be blown up and will take nothing less than 5-10 years to rebuild.

teeytimi:
I just hope our dullard here hasn't signed any if those agreement.

America warned them.

Am a Kenyan and this news is fake which was trolled by some unethical bloggers,even the Chinese government itself dismissed these claims including our government's auditor general Ouko.

Although legally, it is almost impossible for China to seize an asset as a debt realisation device without an insolvency legal framework or treaty. Especially where the port lies within Kenya's sovereign territory. Bankruptcy for countries is very tricky.

https://www.youtube.com/watch?v=Uk40ss4LtiU

China's Prepares To Seize Kenya's Port Of Mombasa For Debt