The Tough Terms of the SGR deal revealed:

• China was to lend Kenya $1.6 billion (Ksh190.77) at 2% interest pa, plus a 0.25% commitment fee.

• It is a 20-year loan with a seven-year grace period.

• 42.06% of proceeds from the SGR dedicated to repay loan.

• Kenya was bound to establish an inland container depot in Nairobi “and its mandatory customs clearance”.

• Kenya was also bound to establish a Railway Development Fund, “to be applied in priority to make repayment of loans in relation to the project”.

• China was to be preferred market for Kenya to source any goods it purchases using proceeds of SGR.

• All disputes to only be resolved by China Arbitrators.

• Kenya not to share these details without consent from Exim Bank of China, keeping contract details under wraps.

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