Friday, April 15, 2022

Are Kenya's Ports Threatened by a Potential Default on Chinese Loans?

 The China Africa Research Institute (CARI) at Johns Hopkins University published in April 2022 a working paper titled "How Africa Borrows from China: And Why Mombasa Port Is Not Collateral for Kenya's Standard Gauge Railway" by Deborah Brautigam, Vijay Bhalaki, Laure Deron, and Yinxuan Wang. 

In 2018, Kenya's auditor general warned that Kenya Ports Authority's assets--of which Mombasa Port is the most valuable--risked being taken over by China Eximbank if Kenya defaulted on loans for Kenya's Chinese-built standard gauge railway.

CARI assembled a scholar-practitioner team, which concluded after an extensive study that China is not going to seize Mombasa port or any port. 

Comment:  A response from Kenya's auditor general or some appropriate Kenyan authority would constitute a useful contribution at this point.