This archive report was first published on 12 November 2019.
On November 12, 2019, a new edition of the external debt register was tabled before the Senate Committee on Budget and Planning, shedding more light on the Arror and Kimwarer dams scandal.
The register, a well-guarded secret in the National Treasury, revealed that Kenya had withdrawn a staggering Sh66.3 billion from four Italian banks, including Intesa San Paolo, UniCredit Spa, and Uni Credit, as of September 30.
Contrary to the National Treasury's earlier statement, the loans were funded by a syndicate of commercial banks, with Intesa San Paolo as the lead syndicate member.
The government's withdrawal of Sh35.5 billion from the London branch of Intesa San Paolo, Sh28 billion from UniCredit Spa, and Sh991 million from Uni Credit raises questions about the use of these funds, given that the projects have not commenced.
Where are the revenue-generating assets from which repayments of the Sh66 billion loan will come from?
The revelations also suggest that the Italian government had little to do with the loans, contrary to the government's claims.
Experts argue that there is a strong case for more transparency in the negotiation of syndicated loans, given the trend of looting of funds borrowed from abroad in Africa.
