Parliament Urges Renegotiation of SGR Contract Amid Legal and Financial Concerns

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Nyakundi Report

Newsroom 1 min read

Kenya's Parliament has called on President Uhuru Kenyatta to rework the Standard Gauge Railway (SGR) contract with China, citing risks to national assets and financial obligations.

A report from the Public Investment Committee, led by Mvita MP Abdulswamad Nassir, highlighted that Kenya could lose the Mombasa port if loan repayments are not met. The committee emphasized the need to adjust payment terms to safeguard the country's interests.

The document stated that the Kenya Ports Authority (KPA) and Kenya Railways Corporation (KRC) were legally bound to repay the loan using their assets, putting KPA's holdings at risk. The committee recommended transferring liability to KRC through renegotiation.

Legislators criticized the contract's secrecy, noting the government has withheld details since 2013. They questioned why KPA would assume liability for transporting goods when alternative transport methods exist.

A Mombasa court recently ordered the government to release the SGR contract after a petition, ruling that secrecy violated constitutional access-to-information principles. The court rejected claims that petitioners failed to follow legal procedures.

The SGR has become a political issue, with Deputy President William Ruto accusing officials of altering the project's original goals. He claimed the railway's efficiency was compromised by self-serving modifications.

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