Kenya Railways is looking for a solution
Kenya's challenges in adjusting its obligations for the recently assembled, Chinese-financed Standard Gauge Railway (SGR) is approaching a limit.
Indeed, even before the COVID-19 flare-up, the rail route neglected to meet traveler and load volume targets and now the monetary decline welcomed on by the pandemic is making the issue much more intense.
The railroad is losing cash at an unreasonable pace of $9.2 million a month making it unfathomable that Kenya Railways will actually want to reimburse its Chinese banks at the current rate.
Recently, Kenya's parliament was cautioned that bits of the new rail route organization could be compelled to stop activities, after Kenya Railways defaulted on $350 million installment to the China Road and Bridge Corporation's auxiliary, Africa Star, which works the SGR.
Presently, officials are standing up in uniquely straight to the point terms: "Look, our economy is beaten and we can't pay," said Kimani Ichung'wa, administrator of the Parliamentary Budget and Appropriations Committee. "We are not saying the obligation isn't there, yet we essentially need to reevaluate what we owe you and the terms of installment," he added.
In a new report, the parliament was encouraged to slice the SGR's operational expenses by half and earnestly rethink the advances with Chinese loan bosses before it is past the point of no return.