Chinese Rail Operator to Kenya Railways: Settle Your Debts First and Then We’ll Hand Over Control of the SGR

File image of Kenya's Standard Gauge Railway that China financed and built as part of the Belt and Road Initiative. Simon Mania/AFP

Afristar, a subsidiary of the state-run China Road and Bridge Corporation, informed Kenya Railways that if it wants the May 2022 handover of the Mombasa to Nairobi Standard Gauge Railway to be completed on time, it’ll first have to pay off its debts, according to a report Monday in Business Daily.

The key debt in question is a $380 million payment that Kenya Railways (KR) failed to make last year and apparently did not reschedule with Afristar. Contrary to widespread concerns that Chinese creditors, namely the China Exim Bank, would exercise punitive clauses in the SGR contracts to garnish revenues from the Port of Mombasa in the event of a default, neither Afristar nor China Exim Bank exercised that option.

  • Get a daily email packed with the latest China-Africa news and analysis.
  • Read exclusive insights on the key trends shaping China-Africa relations.
  • Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

OR

Already a subscriber? Log in Click Here to Learn More
by Eric Olander

Most Read

1
Developing Countries’ Debt Servicing Costs to China Are Significant, but Nowhere Near as Much as Other Creditors
2 Chinese Military Fans Discuss Why Indonesia Bought Rafale Instead of J-10C
3
Chinese Cargo Planes Secretly Ferrying Supplies to Iran, Claim Online Sleuths
4
Indonesia Goes Nuclear, Taps China and Russia for Modular Reactors
5
Thailand in Last-Minute U.S. Talks as 36% Tariff Looms
6 Trump’s Contradictory Iran Strategy Leaves U.S. Weaker After War’s End, Says Chinese Commentator

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.

More about CGSP