Kenya and China to Solve SGR Disputes in Beijing If Dialogue Fails

Standard  Gauge Railway (SGR) disputes to be resolved in Beijing China if friendly dialogue fails.

This is stated in an SGR contract document that was signed by the Export-Import Bank of China and Kenya’s National Treasury (acting as the government’s representative).

“Any dispute arising out of or in connection with this Agreement shall be resolved through friendly consultation,” the contract reads.

“If no settlement can be reached through such consultation, each party shall have the right to submit such dispute to the China International Economic and Trade Arbitration Commission (CIETAC) for arbitration,” the document shows.

“The arbitral award shall be final and binding upon both parties. The arbitration shall take place in Beijing.”

CIETAC, the world’s oldest and busiest arbitration institution, is the leading mediation institution in Mainland China.

CIETAC was founded in April 1956 as the Foreign Trade Arbitration Commission.

Kipchumba Murkomen, Cabinet Secretary for Roads, Transport, and Public Works, made the details of the Sh670 billion SGR contract public yesterday.

Murkomen distributed the documents via social media and to the majority leaders of both the Senate and the National Assembly.

The loan terms set the interest rate at 2.0 percent per year. The loan’s management fee and commitment fee are both set at 0.25 percent.

The loan has a 20-year repayment period and a seven-year grace period.

The contract also states that any goods purchased with SGR proceeds will be sourced preferentially from China.