From The Star Claire Munde reports that Kenyan President Uhuru Kenyatta is reassuring Kenyans that China will not take over the Port Of Mombasa:
Propaganda. That is how President Uhuru Kenyatta has described reports that the Port of Mombasa could be taken over by China if Kenya defaults on paying its loan for the SGR.
“The issue of the take over of Mombasa Port by China is pure propaganda. We are ahead of our payment schedule for the SGR loan and there is no cause for alarm,” Uhuru said.
The President spoke on Friday during a round table discussion with journalists.
The president said though there has been public outrage and concerns about Chinese lending, his government will continue to borrow.
“We must appreciate where we are. All these issues are just a chicken in the egg. We are borrowing to handle the huge infrastructure deficit. It is not about incurring debt but how we use it,” he said.
Two observations:
- I’m sure that’s what the authorities in Sri Lanka were saying, too.
- Never believe anything until it’s been officially denied.
China could be throwing money away in Kenya. There’s always a lot of moral hazard with easy money, most likely will be misspent, with China trying to recover something from a different regime 5-10 years down the road. I know it’s popular now to fancy China as the next superpower. Put me down as a skeptic.