China’s debt-trap diplomacy. Kenyan newspaper the Daily Nation reported in its Sunday edition seeing a copy of a loan contract between Kenya and China for the Mombasa-Nairobi railway. According to the newspaper, Kenya offered infrastructure projects, including assets such as the Port of Mombasa, as collateral for a Chinese loan to build the railway. The paper also reported that Kenya has no “right of immunity on the grounds of sovereignty” under the contract and that the loan agreement is governed by Chinese law. China’s Foreign Ministry denied the report, saying the Mombasa port was not used as collateral for the loan. Two weeks ago, Kenyan President Uhuru Kenyatta said he would release the contract, but, according to the newspaper report, it contains a secrecy clause that prevents either party from releasing it publicly. Meanwhile, Kenya is in talks with the International Monetary Fund, which recently downgraded the country’s default risk from stable to moderate, for a new
Daily Memo: Chinese Loans, Adventures in Space, Syrian Kurds
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