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.
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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.
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