MPs question value of Uhuru Kenyatta's China trip

Opposition MPs last evening questioned the value of the trip to China by President Uhuru Kenyatta in August as it emerged that the grants and loans from the Chinese to the Kenyan government amount to Sh16.02 billion.

When he was on the trip, the President’s communication unit announced that Kenya signed agreements worth Sh425 billion; Sh340 billion for economic partnerships, wildlife protection and the standard gauge railway project and Sh85 billion for energy-related projects.

On Wednesday, Majority Leader Aden Dualle told MPs that on the trip to the Far East, President Kenyatta secured a grant, a loan and a concessional loan worth a total Sh16.02 billion.

“There were huge investments that went between the Kenyan private sector and the financial institutions in China. There were many outgoing projects funded by many Chinese banks and the government but I want to confirm for you that the Jubilee government does not make a trip for 15 billion,” said Mr Dualle.

“What was reported was what was value to the Kenyan people; five billion dollars. It’s not the 15 billion.”

Saying the deals would be brought to Parliament for approval, Mr Dualle cited the construction of the railway line as an example of a project that would be funded under a Private-Public Partnership agreement.

This is the first time the value of the trip to China is being questioned in the National Assembly. The Energy Committee has also queried the circumstances in which a memorandum of understanding promised a Chinese firm rights to drill for geothermal power.

Of the funds to the government directly, the first is a grant of Sh1.42 billion, which will be used to fund a project to be agreed upon between the two governments’ finance ministers.

The second is an interest-free loan of Sh2.8 billion to be given within five years from September 1 this year and which would be used to fund technical and economic cooperation projects to be agreed upon between the two governments.

Parliament would be notified once the projects are identified by the two governments, said Mr Dualle.

The Majority Leader said the loan would be paid at the rate of one tenth over 10 years from September 1, 2023 to August 31, 2033.

China will also provide Kenya with a concessional loan for Sh11.8 billion to be used on Nairobi City Centre Extra High Voltage and the 66KV network upgrade and reinforcement project.
Projects would be appraised by the Chinese Export-Import Bank, which would also supervise the use of the loan. The agreement for the loan would remain valid for three years after it is signed.

It would be declared invalid if the two governments fail to agree.

But led by MPs Chris Wamalwa (Kiminini, Ford-Kenya), John Mbadi (Suba, ODM) and James Rege (Karachuonyo, ODM), they wondered whether that amount was worth it given the large delegation President Kenyatta travelled with.

“We don’t want to mortgage our children and our future generations,” said Mr Wamalwa, who had asked for the statement. “In our role as the National Assembly, we wanted to know this for the purposes of planning.”

Mr Wamalwa was wary that the Chinese could have provided that money with the condition that the projects would be carried out by Chinese firms, which is rather common and without competitive bidding.

John Mbadi wanted the statement from the President’s spokesman clarified because it created the impression that either Mr Dualle was lying or that “the communication was aimed at the West so that they don’t push the ICC issue.”

“I really doubt if you can go to China, stay for all those days only to negotiate for Sh15 billion to be advanced in five years, really, for a country like Kenya. That should be a personal loan of John Mbadi or Homa Bay County,” said Mr Mbadi.

Richard Onyonka (Kitutu Chache South, ODM) struck a more conciliatory note; saying that for a president to go to another country and get even Sh1 billion, it was commendable.

He asked whether there was an agreement to have 250,000 Chinese come to Kenya, but Mr Dualle told him that wasn’t true.

Under pressure from the MPs, Mr Dualle said Mr Wamalwa’s question only touched on grants and loans.