Kenya’s Finance Minister Ukur Yatani has denied reports that the country risks losing its main port to China should it fail to pay huge loans advanced for the construction of a new railway line.
A local newspaper reported on Monday that Chinese lenders could take control of the port of Mombasa if Kenya defaults on the $3.2bn (£2.3bn) loan.
But in a statement, the finance minister said there is absolutely no risk of China or any other country taking over the port.
He said the loans for the railway cannot be paid through any other fund or any other entity without the approval of parliament.
Yatani said the government of Kenya cannot and has not pledged public assets as security for a debt because such an action only violates provisions of its existing loans agreements.
