Africa Confidential: Finance costs threaten the Nairobi-Mombasa express

[Kadudu]

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It seems SGR is deep in the red despite of the loudly announced increase in freight of containers to Nairobi.
Pundit has always advocated for such projects despite the heavy inclination to corruption. Even that company Afristar that operates SGR is a joint venture between the Chinese and our local well connected boys. That is why these contracts are so much tilted towards the Chinese. Nobody bothers to look at the details.

https://www.africa-confidential.com/article/id/13693/Finance_costs_threaten_the_Nairobi-Mombasa_express

[RV Pundit]

My friend that Railway will see us through maybe 200yrs. Such infrastructure are god sent. Dont look at this with short term vision.

[Georgesoros]

The highway will pay for itself. The railway is also a good investment. The project is not the 80b dam where Ruto's people took the money and ran,

[RV Pundit]

Ruto took 10 percent as is usual but Uhuru cancelled the project - so Italians must be paid.You cant lock a horse when it bolted.Way forward - bring italian to finish the job

The highway will pay for itself. The railway is also a good investment. The project is not the 80b dam where Ruto's people took the money and ran,

[Georgesoros]

Ruto took 10 percent as is usual but Uhuru cancelled the project - so Italians must be paid.You cant lock a horse when it bolted.Way forward - bring italian to finish the job

The highway will pay for itself. The railway is also a good investment. The project is not the 80b dam where Ruto's people took the money and ran,

Yap.
Brong them back. I thought they went bankrupt??
The project is good for the area and beyond.

[RV Pundit]

We chased them from the site.
That is why I say Ujinga is worse than corruption.
We will eventually pay for our ujinga.
And Ruto and guys have eaten their 10 percent.

Yap.
Brong them back. I thought they went bankrupt??
The project is good for the area and beyond.

[Kadudu]

Pundit, Kenya signed contracts with a company that was already on its knees. We will pay not to the company, but to the insolvency administrator.

My problem is you keep on overlooking the very many bills paid by Kenyans like in this case the 11B Ksh insurance that was totally unnecessary. The 10% cut that Ruto pocketed is not even the main issue. The whole project was inflated in price. That is the main issue.

We chased them from the site.
That is why I say Ujinga is worse than corruption.
We will eventually pay for our ujinga.
And Ruto and guys have eaten their 10 percent.

[RV Pundit]

Okay just accept like I have that all kenya projects are inflated - at least by 10 percent
There is competition in tenders - which tend to bring corruption tag - to around 10 percent.
Okay accept maybe some have high margins - with insurance and all that - let say 20 percent.

Now what is our EXPOSURE when we dealt with international contract KIENYEJI STYLE.

Our exposure is we will pay Italians 100 percent if we lose in international arbitration and courts.

100 percent - meaning we could end up paying say half the cost - and there is no DAM on site.

The best way to deal with these stuff is to remove emotions and jealously.

We know Uhuru has eaten 10 percent - but we will allow chinese to continue to work on SGR and others -  because it already secured by very tight international law - and we would need to proof corruption - involving the contractors.

Does anybody have evidence that would convince a court in Italy - that a Italian conglomerate bribed - NOPE. Even corrupt kenya courts will not be convinced - and DPP has been doing somersault.

If Ruto took the money - where is the evidence. HAKUNA. It's like SGR and Uhuru. EVIDENCE HAKUNA. But we obviously KNOW THEY TAKE HUGE CUTS.

What way forward - we stop building huge things because someone will get huge cut? How will economy and people develop without basic infrastructure like pipe water? What opportunity cost for missing that water.

For me - as evil as corruption is - we have to understand this going to be a long battle. None of these guys will stop taking the 10 percent.

So maybe we should just call that 10 percent - management or project fee like Wanjigi and murathe calls them. - and we move on.

Before rushing to terminate ANY contract we need to read fine print, get advice of AG and proper lawyers. Otherwise for now we are making a bad situation worse...

And clearly Ruto, Uhuru and Raila are smarter and powerful than our justice system....they leave no evidence...and even when caught like in Pandora papers...we cannot do anything.

Pundit, Kenya signed contracts with a company that was already on its knees. We will pay not to the company, but to the insolvency administrator.

My problem is you keep on overlooking the very many bills paid by Kenyans like in this case the 11B Ksh insurance that was totally unnecessary. The 10% cut that Ruto pocketed is not even the main issue. The whole project was inflated in price. That is the main issue.

[RV Pundit]

None of these guys will stop taking the 10 percent. 99.9 percent are into kenya politics for OPPORTUNITY TO TAKE THESE CUTS - from MCA to PORK. Nobody should lie to you that sijui who or which party is better. All are the same. We therefore need to find another metrics. Steal but deliver.

This remind me of trucking business - kenya drivers are addicted to stealing fuel - I know some Mhindi who just deliberate added fuel and tell his driver that is for them to steal It's like a kenyan driver will not feel good until insert a tube and suck out fuel.In my truck I found them RED HANDED - 60 litres - 3 containers of 20 liters.So in trucking business - it's STEAL But DELIVER.

In kenya politics - I would say STEAL BUT DELIVER. If stealing made Uhuru supervise SGR day and night - we got it in 3yrs - then SIO MBAYA. He is doing the same on Nairobi Expressway - and Chinese will deliver in a shocking 1yr - Uhuru want to complete and get his STAR Africa company collecting toll for 30yrs.