This archive report was first published on 2 July 2020.
China Responds to Kenyan Court Ruling on SGR Contract ¶
On July 1, 2020, the Chinese Embassy in Kenya issued a statement in response to the Court of Appeal ruling that declared the Ksh500 billion Standard Gauge Railway contract illegal.
The ruling, made on June 19, 2020, by a three-judge bench comprising of Justices Martha Koome (presiding), Gatembu Kairu, and Jamila Mohammed, found that Kenya Railways failed to comply with procurement laws while issuing the contract to the China Roads Bridge Corporation (CRBC).
"We have noticed the report that Kenya's appeals court has ruled that Kenya Railway Authority and other government departments violated the public procurement law in respect of the SGR project. We believe that Kenya will properly handle this case," a statement sent to Global Times, China reads.
The SGR project, which replaced the meter gauge railways constructed during British colonial rule, is crucial to Kenya's economic and social development, connecting East Africa and offering job opportunities. The project's first phase, completed by CRBC, cost Ksh327 billion, while the second phase to Naivasha cost Ksh150 billion. The final phase from Naivasha to Malaba is projected to cost Ksh380 billion.
Activist Okiyah Omtatah had filed a case against the state, faulting it for single sourcing the project and arguing that Parliament was not involved in approval, as well as zero public participation in the project.
The appellate judges ruled that Kenya Railways Corporation (KRC) issued CRBC the contract before Kenya and China's Exim bank sealed a financing deal, violating provisions of Article 227 (1) of the Constitution and Sections 6 (1) and 29 of the Public Procurement and Disposal Act, 2005.
