Make public contracts awarded to Chinese firms, MP tells State

Former National Assembly Majority Leader and Garissa Township MP Aden Duale. [Boniface Okendo, Standard]

Garissa Township MP Aden Duale is now demanding for total disclosure of multi-billion-shilling contracts awarded to Chinese firms since Jubilee took power in 2013.

In a statement on the floor of the House, Mr Duale accused Chinese-linked companies of taking up all major infrastructure projects.

He said the firms have created a vicious cycle of “borrowing from China to pay China.”

The former National Assembly Majority Leader disclosed that the government paid approximately Sh645billion or 65 per cent of the total actual expenditure of Sh975.2 billion in the Energy, Infrastructure & ICT sector to China-linked companies.

He wants Transport Cabinet Secretary James Macharia to avail to the National Assembly names of local directors of all Chinese firms undertaking projects under the ministry.

“This should include a breakdown of contracts awarded by all the State agencies in the Ministry from the financial year 2013/2014 to date,” said Duale.

The MP further wants disclosure of contracts awarded to each firm as well as a breakdown of the total amount paid so far since Jubilee took power.

Some of the China State-owned companies awarded contracts include China Communications Construction Co (CCCC) and its subsidiary China Road and Bridges Corporation (CRBC), which was awarded the bulk of the road and railway contracts. 

Other firms are China Wu Yi, Synohydro, Jiangxi Engineering, China Railways 21 Bureau Group, and the Third Engineering Bureau of China City Construction Group.

Duale said the firms have continued to win major government contracts at the expense of established local companies.

“The China State-owned or Chinese linked companies are riding on the ballooning loans China government is lending Kenya which has increased to Sh797.8billion to amass contracts in the Energy, Infrastructure and ICT Sector,” he claimed.

The Garissa Township MP further said that over-borrowing from China and awarding of contracts to China State-owned companies has highly disadvantaged the country.

He cited the high currency risks associated with high demand for US dollars to settle the debt owed and the settlement of payment of contracts to China-state-owned companies.

The exchange rate of one US Dollar to Kenya shillings has depreciated from approximately Sh80 in 2013 at the start of SGR project to Sh114 as of today.