Rail News
Chinese firm demands billions of shillings from Kenya before handing over railway project
The Guardian
18 August 2021 (Kenya)
A Chinese firm has allegedly demanded billions of shillings in pending bills that Kenya borrowed to build the modern railway line from Mombasa to Nairobi.
Africa Star Railway Operation Company Ltd (Afristar), the Chinese company contracted to run the train service, was said to have listed clearing of its debts as a condition before fully transferring operations of standard gauge railway (SGR) to Kenya in May next year.
Parliament last year revealed that Kenya had not paid Sh38 billion to Afristar, which is majority-owned by China Road and Bridge Corporation (CRBC) and was contracted in May 2017 to run the passenger and cargo trains on the SGR.
KRC chairman Omudho Awitta stated “The negotiations between KRC and Afristar commenced in the year 2019 and an agreement has been reached that KRC (Kenya Railways Corporation) takes over obviously with some conditions including clearing of any outstanding payments,”
The billions of shillings in pending bills add to the Sh 420 billion that Kenya borrowed to build the modern line from Mombasa to Nairobi and for the purchase of engines and coaches.
The line, which started operations in 2017, was then linked with another new track, costing USD 1.5 billion (Sh 162.9 billion) and also funded by Chinese loans, to Naivasha, reported Business Daily.
Source
https://guardian.ng/news/chinese-firm-demands-billions-of-shillings-from-kenya-before-handing-over-railway-project/
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