Kenya could lose the port of Mombasa to China’s Exim Bank if it defaults on loans taken out against the facility. Port assets were used as security to guarantee the loans, something undisclosed by the Kenya Ports Authority (KPA). China's debt stock is almost certain to increase further this year as construction of the Standard Gauge Railway (SGR) enters its second phase, with Kenya said to have borrowed a further Sh165 billion for the extension of the railway line from Nairobi to Naivasha. A letter from auditor general Edward Ouko’s office said the KPA’s property was at risk as it would not be protected by sovereign immunity in the event of proceedings against it. The Kenyan government has been trying for years to get a court order forcing China to pay back its loans.
Kenya could lose the port of Mombasa to China’s Exim Bank if it defaults on loans taken out against the facility. Port assets were used as security to guarantee the loans, something undisclosed by the Kenya Ports Authority (KPA). A letter from auditor general Edward Ouko’s office said the KPA’s property was at risk as it would not be protected by sovereign immunity in the event of proceedings against it. The Kenyan government has been trying for years to get a court order forcing China to pay back its loans.