Transport CS Kipchumba Murkomen has made true his word to put the Standard Gauge Railway contract in public. The CS had promised to make the document public once he settles into his office.

Speaking during his vetting National Assembly’s Committee on Appointment, the newly sworn-in CS vowed to release details of the mega infrastructural project that former President Uhuru Kenyatta’s regime had closely guarded.

“I have spoken to everybody I thought was a person of influence in government and privy to the SGR contract, but they have said they have never seen the SGR agreement. I don’t want to name those I spoke to, but once I get into the office, I will look for it,” Murkomen told the Wetangula-led committee during his vetting.

The contract which was signed by former CS Henry Rotich on behalf of the Kenyan government had attached the Kenya Ports Authority as a guarantor incase of a default. This puts Kenya Ports Authority assets especially the Mombasa port in line to be seized by the Chinese incase of a default.

The document which was signed in November 2014 also disclosed that the loan to finance the contruction of the SGR had an interest rate of 2.0% per annum. Management fee was placed at 0.25% while a  commitment fee of 0.25% was effected.

The loan was to be paid in a period of 20 years after a grace period of 7 years. Another controversial clause in the now public contract is the exemption from paying taxes by the Chinese contractor. Chinese imports were also given preferential treatment in sourcing materials used in the project.

The government also  agreed to always pay 1% of the loan amount as a fine incase of a default. The amount to be repaid will always be calculated in US Dollars no matter how the exchange rates are. Considering that at the time, the dollar was trading at KES 86 while right now the dollar is trading at KES 122. This means that exchange rates alone have added almost half of the loan principal.