Senate to Grill Top Treasury Officials Over SGR Loans

The Senate wants the National Treasury to shed light on claims that the government was fined Sh1.3 billion by the Export-Import Bank of China and other lenders for defaulting the Standard Gauge Railway (SGR) loan.

In a statement to the Senate, Vihiga lawmaker Godfrey Osotsi  is also seeking answers on how much revenues is generated by the SGR and how much has been remitted in the last three years.

Kenya borrowed more than Sh500 billion from Chinese lenders, led by the Export-Import Bank of China, to fund the construction of the SGR from Mombasa to Naivasha.

In his statement which has now been committed to the House Finance Budget and Finance committee, Osotsi wants answers on state-targeted interventions taken by the government to prevent the alleged looming repossession of Kenya’s collateral assets by the Chinese lenders because of loan defaults.

“The committee should investigate the material loan agreements, project payments, projects adjustments of other capital projects from inception entered into by the government and financed by the Ministry of National Treasury and Economic planning, stating any defaults accrued to date,” said Osotsi.

“We need full disclosure of the country’s exposure in the SGR contracts. I have never understood why the government keeps the deal secret when we all have to pay for the loan,” said Nairobi Senator Edwin Sifuna.