Once in a while you run into a story that epitomizes journalism’s true calling. The Business Daily came through with such a story on October 13.
“China fines Kenya Sh1.41bn for defaulting on SGR loans,” the heading said.
Keen reading of Treasury documents found that during the fiscal year ending June 30, 2022, passengers and cargo on the Standard Gauge Railway (SGR) did not generate enough revenue to meet operating costs of Africa’s most expensive rail service, the story showed.
Operations cost Sh18.5 billion. The rail service collected only Sh15 billion. In other words, SGR lost Sh3.4 billion.
The story by John Mutua reminded readers that Kenya borrowed half a trillion shillings from China to build the SGR from Mombasa to Naivasha.
If you borrow a loan you must pay it back. If you’re unable to pay, you must pay a fine. And the amount you defaulted on doesn’t go away. That is how debt works.
It should be no surprise, therefore, that the SGR is a sweet deal for China.
The lender should recoup its money from the rail line’s profits. No profits? No problem, says China in the deal. We’ll just fine you for losing. And you will still pay us our money.
So, China fined Kenya for last year’s loss. The fine is not a slap on the wrist. What could you do with Sh 1.4 billion?
This is why journalism is the Fourth Estate.
A country is run by three arms of government: the Executive, the Legislature and the Judiciary. None levelled up with Kenyans to tell them what happened, and that they as taxpayers and their children’s children are on the hook for over a billion additional shillings to pay out to China.
And this just in one year.
In this story, the Fourth Estate came through for the people of Kenya.
