Kenya to pay China sh.1.3b fine for late loan repayment

0
331
The SGR station in Mombasa./COURTESY

BY>> TIMOTHY LAWRENCE

Kenya will have to pay a sh.1.3 billion fine to China for late repayment of the sh.324.1 billion loan to construct the Standard Gauge Railway.

China’s fine comes after Kenya was denied a loan relief of six months.

The amount stated represents 1% of the total sum which was used in constructing the Mombasa-Naivasha SGR.

The Railway has been experiencing challenges in revenue collection and has only managed to pay sh.22.7 billion in the last year.

Also read: Importers to choose mode of transport from Mombasa port

The low revenue generated by the cargo and passenger services on the track is not enough to repay the Chinese loan hence the burden will therefore fall on the taxpayer.

Comments

comments