The Office of the Auditor General (OAG) has denied a report that Kenya might lose the Mombasa port to a Chinese bank if it fails to pay back the SGR loan.
Through their social media handle, OAG said they had not released such a report.
— Auditor-General Kenya (@OAG_Kenya) December 19, 2018
The report dated 16th November caused frenzy on social media after Kenyans learnt that Chinese government may take over Mombasa port if Kenya Railways Corporation (KRC) defaults in the payment of sh.227 billion owed to Exim Bank of China.
“The China Exim Bank would become principle over KPA if KRC defaults in its obligations and China Exim bank exercise power over the escrow account security,” reads the alleged report in part.
“The KPA assets are exposed since the Authority signed the agreement where it has been referred to as a borrower under clause 17.5 and any proceeding against its assets by lender would not be protected by sovereign immunity since the government waived the immunity on the Kenya Ports Assets by signing the agreement,” it continues.