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Letter to the Editor: Why China Will NOT Seize the Port of Mombasa if Kenya Defaults on SGR Debt

An oil tanker carrying 200,000 barrels of crude oil worth Ksh 1.2 billion is berthed at Kipevu Oil Terminal in Kenya's port city of Mombasa August 26, 2019. AFP.

Hi Eric,

Just caught this statement [in your September 28 column “China Faces a Critical Test”: “And let’s not forget that, should Kenya Railways default on the Nairobi-to-Mombasa SGR loan, there’s always the Port of Mombasa that serves as collateral“] and wanted to reach out to you as this is not an accurate picture of the loan arrangement. Won Kidane (an international lawyer) and I did a deep dive into these issues and summarized some of it in a recent policy brief.

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