By Staff Writer
Kenya is at risk of losing the port of Mombasa to the Chinese if the government fails to pay kes364 billion Standard Gauge Railway (SGR) loan, the Auditor General has revealed.
According to a report tabled in Parliament by the Auditor General, assets of Kenya Ports Authority were used as collateral for the kes363.96 billion SGR loan. KPA and Kenya Railways Corporation waived any immunity in the event of a legal tussle linked or any claim of their assets.
Part of the report reads:
“Under this clause (17.5) the borrowers – KPA and KRC – agree that any proceedings against them or their assets in connection with the agreement, no immunity from such proceedings shall be claimed by it or with respect to its assets.
“…and they irrevocably waive any right of immunity whether characterised as sovereign immunity or otherwise,”