Authorities in Kenya have allayed fears that China will seize the Port of Mombasa if the country defaults on loans procured to finance the loss-making Standard Gauge Railway (SGR).
The project is part of China's worldwide "Belt and Road Initiative," meant to facilitate World trade, and some say, to entrap poor Nations in debt and seize their assets when they inevitably cannot pay to loans back.
Many have speculated that China could seize the valuable Mombasa port if the country fails to make payments.
But National Treasury cabinet secretary Ukur Yatani said Kenya did not offer the strategic national asset as collateral for the $3.2 billion loan sourced from the Export Import Bank of China to finance the project.
“The port of Mombasa has no adverse exposure to any lender or category of lenders through existing loan agreements with the government,” said Yatani.
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