Four years since the launch of the standard gauge railway – Kenya's most expensive infrastructure project ever – Kenyans are yet to see the documentation outlining its planning, construction, and operation.
Despite numerous requests from multiple parties, the government has flatly refused to release this information, citing “confidentiality.” Kenyans have asked to see these contracts because they are paying for this initiative, and they deserve answers.
On June 21, 2021, Okoa Mombasa and the Institute for Social Accountability filed a petition at the High Court in Mombasa to order the release of all contracts, agreements, studies, and other documents related to the SGR’s planning, construction and operation.
Over Sh450 billion in taxpayers' money has been spent on the SGR’s construction alone, and that’s only part of the price tag.
SGR revenue was supposed to pay back the loans used for construction, but in four years of operation, the railway has never turned a profit. In fact, it continues to hemorrhage cash – around Sh4.7 billion alone last year.
Things are so bad that in 2019, the government began forcing all container cargo at the Port of Mombasa be transported inland via the SGR, despite road transport being cheaper.
A report by the policy think tank Kenya Institute for Public Policy Research and Analysis found that the actual capacity is below 40 per cent of the original promised capacity in the official plans.
A 2019 report by a joint committee of the National Assembly also found that the railway has not achieved its promise of carrying more than 22 million metric tonnes of freight. The report also revealed the negative socioeconomic impacts of the unprocedural project, including massive job losses that have devastated hundreds of thousands of households.
Why was such a loss-making and economically devastating venture approved and at such high cost?
At the time of contracting. the SGR was worth 4.5 per cent of GDP, which is an imprudent and risky venture even for China’s deep pockets. Further, it emerged that the country’s biggest ever public infrastructure project was proposed, designed, approved, and contracted, behind the scenes, based on flawed analysis, and without the proper cabinet approval.
It then went ahead without due diligence, and despite evidence that it appeared to be an unnecessarily expensive option.
In filing the petition, the Okoa Mombasa Coalition and TISA argue that the Constitution prohibits confidential contracts for public infrastructure projects such as the SGR, which by law require public participation and accountability.
It’s our money, and we have a right to know the details of the project: How our money is being spent, the consequences of a loan default, and the government’s decision making processes in signing the deal.
For instance, we are aware that an agreement signed between Kenya Railways and Kenya Ports Authority in September 2014, that underpins the collateral for the loans, includes a schedule of cargo the KPA was obliged to consign to the railway to meet the loan repayments.
How was government able to collateralise public assets without public engagement and parliamentary oversight?
It is our intention that the present action lay the ground for subsequent action against errant state and public officers who have exploited loopholes in the law, demonstrated contempt of court and exposed present and future generations to grave socio-economic vulnerability.
On the debt front, Kenya’s increasing external commercial loans, which are foreign currency dominated, have driven the country into a cycle of external borrowing and forced us into an IMF-sponsored fiscal consolidation programme.
However, despite its promises on paper, the government remains recalcitrant and refuses to make public crucial information such as beneficial ownership of companies involved in the Covid-19 millionaires Kemsa scandal, the list of exemptions, SGR and other contracts such as the Eurobond indentures. All these remain hidden away from public scrutiny and oversight.
But ultimately, this case goes well beyond public debt. It’s about the survival of democratic governance in Kenya.
Financial transparency is the life blood of the social compact and the advancement of democratic principles, as it provides the basis for holding public officers accountable for their actions.
Sunlight is also the best policy as it prevents corruption and abuse of public funds. Making the contracts public will also foster more informed public participation and debate in Kenya around the SGR and its impact, as well as more accountability and openness in public finance.
We must not allow our leaders to keep us in the dark, while they spend our hard-earned tax money with reckless abandon. We need transparency, accountability and justice. The court’s ruling on our petition has the potential to be a significant step towards obtaining those goals.
Wanjiru Gikonyo is the national coordinator for the Institute for Social Accountability, which advocates participatory, inclusive and accountable governance. (Find her on @GikonyoCiru /[email protected])
Khelef Khalifa is the chair of Muslims for Human Rights (MUHURI) and a member of the Okoa Mombasa coalition, which advocates more local participation in decisions that affect local resources in the Coast region
