China fines RUTO’s Government Ksh1.3B for defaulting on the Standard Gauge Railway loan


 Friday, October 14, 2022 – The Government has been fined Ksh 1.312 billion by the Chinese Government for defaulting on payment of loans used to build the Standard Gauge Railway (SGR) in the financial year ending June 2021.

Documents from the National Treasury revealed that the fine relates to the cost of default on interest at 1% of the due amount.

The multi-billion project that was undertaken under Uhuru’s administration increased the country’s debt crisis owing to its yearly costs of operation.  

For instance, the project’s cost of operation stood at Ksh18.5billion against Ksh15 billion (profits) in the 2020-21 financial year.

Kenya’s debt standing that is currently at Ksh8.6 trillion, will skyrocket after President William Ruto returned activities at the inland dry port in Naivasha back to Mombasa.

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