Spain Demands Kenya Repays Ksh1.2 Billion Debt

January 10, 2024

Kenya and the Kingdom of Spain are reportedly locked in a diplomatic dispute regarding outstanding bills exceeding Ksh.1.2 billion.

Due to a 10-year delay in settling the bill for the construction of a multipurpose dam at the lower Ewaso Ngiro by a Spanish company, Kenya faces the prospect of substantial interest penalties, Citizen TV reports.

The Embassy of Spain has reportedly written to various government entities requesting payment without much success.

In a letter addressed to the Treasury, Spain’s Ambassador to Kenya Javier Garcia de Viedma writes; “As you are aware the longstanding debt with the Spanish companies TYPSA is yet to be settled…despite the many efforts taken by the company and this embassy to collect the outstanding payments we still have not received any way forward on the issue.”

The letter mentions that the matter is jeopardizing potential future investments in Kenya and the reputation of the Kenyan government.

In a separate letter to Head of Public Service Felix Koskei, the Treasury CS confirmed that the Spanish company was engaged by the Ministry of Regional Development (now Ministry of East African Community) for the detailed design of the lower Ewaso Ng’iro South River multipurpose dam, with contracts totaling Ksh.3.1 billion and Ksh.267.5 million.

The embassy further emphasized that the outstanding bills underwent verification and were confirmed to be eligible, warranting payment to have been processed.

The government states that it is awaiting another round of verification by the pending bills committee, chaired by former Auditor General Edward Ouko, regarding the outstanding bills.

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