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Rotich says taxpayers won’t inherit RVR’s loans

Treasury secretary Henry Rotich: The Treasury never guaranteed any of the loans. FILE PHOTO | NMG
Treasury secretary Henry Rotich: The Treasury never guaranteed any of the loans. FILE PHOTO | NMG 

The Treasury on Thursday said it will not absorb Rift Valley Railways’ (RVR) loans in the wake of the recent termination of the company’s 25-year concession contract in a move that may cause the railway operator to default, leaving the creditors in a quandary.

Treasury secretary Henry Rotich said RVR’s outstanding loans amounting to Sh16.1 billion were commercial, and were therefore advanced after the lenders profiled the concessionaire for risk. 

“To the best of my recollection, the Treasury never guaranteed any of the loans,” said Mr Rotich.

RVR signed the long-term loans deal with a consortium of international financiers in 2012 to fund the upgrade of the Kenya-Uganda track.

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