This archive report was first published on 24 June 2020.
On June 24, 2020, the Court of Appeal delivered a landmark ruling that the procurement process for the Standard Gauge Railway (SGR) project was illegal, sparking widespread debate and scrutiny of the project's legitimacy.
The SGR project, which was initiated by the Kenyatta government, has been marred by controversy and allegations of corruption, with many questioning the opaque and lopsided agreement between Kenyan officials and the Chinese government.
According to Robert Shaw, an economic and public policy analyst, the project's procurement process was flawed, with the Chinese government and its commercial counterparts benefiting greatly at the expense of Kenyans.
Shaw argues that the project's massive cost, estimated at Sh500 billion, is unsustainable and that the agreement's clauses regarding collateral are also invalid.
The Court of Appeal's ruling has significant implications for the project, with the government facing the possibility of not being obligated to pay another shilling, and the risk of domestic outrage and court cases from Kenyans.
Beijing and the concerned companies may have limited options in this situation, including walking away and letting Kenyans run the SGR, or taking the matter to international arbitration, which could be a double-edged sword for the Chinese.
As Shaw notes, the public will be treated to a galaxy of exposures, and this could well be the mother of all scandals, with the government and China Road and Bridge Corporation caught between a rock and a hard place.
With the project only two-thirds finished, it remains to be seen how it will fulfill its 'dream' role of being the seamless link to inland Eastern Africa.
As Kenyans, it is imperative that we make it clear to the government that it's no longer business as usual on the SGR, and that we demand transparency and accountability in the project's management.
