China might be preparing to take some significant assets in the African country of Kenya, as an outcome of debt-trap diplomacy.
African media reports that Kenya might soon be required to relinquish control of its largest and most profitable port in Mombasa to Chinese control.
Other possessions related to the inland shipment of products from the port, including the Inland Container Depot in Nairobi, and the Standard Gauge Railway (SGR), may also be jeopardized in the event of a Chinese port takeover.
Kenya has supposedly taken very big loans from the Communist federal government for the advancement of some significant highways, and specifically for the SGR, which forms a vital transportation link to and from Nairobi for the import and export of products through Mombasa.
In November, Moody’s noted that Kenya is at high threat of losing tactical assets since of debts owed to Beijing.
Local media began to reveal concern that Chinese loan providers may be angling to take properties considering that it does not appear the Kenyan government will be capable of paying back the loans.
Now, one month later on, ahead of the New Year, it’s been reported that the Chinese might be preparing to take over the Mombasa Port facilities soon.
The African Stand also seems to suggest that the SGR, which is run by the Chinese, may have been designed to be a “loss-making endeavor.”
With a documented loss of KES 10 billion (US$ 98 million) in its very first year of operation, it would be nearly impossible to pay back the loans taken for its building in the time requested. Kenya reportedly accepted loans of KES 500 billion (US$ 4.9 billion) for the SGR’s construction.