World Bank says Kenya overpaid for railway and loses billions to corruption
The World Bank says Kenya overpaid Sh117bn for the Mombasa-Naivasha railway and that corruption is hurting growth. Concerns were also raised about a Sh1.7trn partnership project.
The World Bank said Kenya paid Sh117bn too much for the Mombasa-Naivasha section of its standard gauge railway, known as the SGR. The finding comes as the bank warns about how Kenya spends public money.
In a report published Wednesday, the World Bank said corruption costs Kenya billions of dollars each year. The money is lost through missing public revenue, higher costs for businesses and lower earnings for workers.
The bank said this weighs heavily on investment and economic growth. Concerns were also raised about a Sh1.7trn public-private partnership project, which should not turn into another form of hidden debt.
Background
A public-private partnership, or PPP, is a project where government and private firms share the work and the financing.
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