Kenya ‘won’t hand over’ port to China to pay debt

Kenya ‘won’t hand over’ port to China to pay debt

Kenya’s Finance Minister Ukur Yatani has denied

reports that the country risks losing its main port

to China should it fail to pay huge loans advanced

for the construction of a new railway line.

The new 472km (293 mile) railway cost close to three times

the international standard and four times the original estimate.

A local newspaper reported on Monday that Chinese lenders

could take control of the port of Mombasa if Kenya

defaults on the $3.2bn (£2.3bn) loan.

Kenya ‘won’t-hand-over’ port to China – 

But in a statement, the finance minister said

“there is absolutely no risk of China or any other

country taking over the port”.

He said the loans for the railway cannot

“be paid through any other fund or any other entity without the approval of parliament”.

“The government of Kenya cannot and has not pledged

public assets as security for a debt because such an action

only violates provisions of its existing loans agreements,” Mr Yatani said.

READ ALSO:

• Budget will ensure economic growth
• Ghana needs 100,000 housing units annually