The questions surrounding the ownership and funding of Kenya’s Standard Gauge Railway (SGR) and Nairobi Expressway, as well as the role of Stanbic Bank in these projects, touch on critical issues of transparency and accountability in public infrastructure financing.
The SGR, which has been a significant infrastructure project in Kenya, was initially funded and constructed by the China Road and Bridge Corporation (CRBC).
However, Kenya Railways Corporation (KRC) has gradually taken over the operations, beginning in 2021, though this process has been fraught with financial challenges, including operational losses covered by Kenyan taxpayers.
The SGR has yet to achieve profitability despite generating revenue from both passenger and freight services.
Similarly, the Nairobi Expressway was developed through a public-private partnership, with CRBC also involved in its construction.
The expressway’s funding model is based on tolls collected from users, but concerns persist about the transparency of these arrangements and the financial obligations tied to them.
There are concerns that these infrastructure projects, though labeled as funded by loans, might have been primarily underwritten by Kenyan taxpayers’ money.
The involvement of Stanbic Bank, a subsidiary of the Standard Bank Group, has also raised questions.
All payments related to the SGR reportedly go through Stanbic Bank, which suggests a deep financial entanglement that warrants scrutiny.
This arrangement has led to speculation about potential insider trading or conflict of interest, given that such significant financial transactions are centralized through a single financial institution.
Additionally, Stanbic Bank’s parent company, Standard Bank Group, has been expanding its presence in Kenya, further intensifying the spotlight on its role in these major projects.
While the SGR and Nairobi Expressway are pivotal infrastructure developments in Kenya, the lack of transparency regarding their funding, ownership, and financial management, particularly involving Stanbic Bank, raises legitimate concerns.
These questions about fiduciary responsibilities, potential insider trading, and the true burden on taxpayers demand thorough investigation and clarity from the relevant authorities, including the Kenya Treasury and other oversight bodies.
Add Comment