Chinese govt dismisses report of Mombasa Port being collateral

The Chinese government has dismissed reports that Kenyan government used Mombasa port as collateral for a loan to construction the Standard Gauge Railway. 

Through its Foreign ministry spokeswoman Hua Chunying the Chinese government says it has confidence that the Nairobi-Mombasa SGR line is feasible and more such projects are welcome.

“We have checked with the relevant Chinese financial institution and found that the allegation that the Kenyan government used the Mombasa port as a collateral in its payment agreement for Nairobi-Mombasa railway is not true.” Said the statement.

Hua Chunying indicated the China-Kenya cooperation on Standard Gauge Railway is progressing smoothly.

The Chinese government dispels the idea that African countries were at risk of bring overburdened with china loans saying feasibility studies are conducted before the projects are undertaken.

“When cooperating with African countries including Kenya, Chinese companies and financial institutions will always conduct joint and thorough scientific study on the feasibility of the projects and then proceed to determine construction and funding plans and scales to guard against causing debt risks and fiscal burdens for Africa.”

The statement from the Chinese government echoes sentiments from the Kenyan government that dismissed media reports that Kenya risks losing the Mombasa port if fails to repay the loan.

  

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