Tax threat to SGR as Chinese contractor rejects local cement, steel
A taxation dispute is threatening to derail the ongoing construction of the $5 billion standard gauge railway (SGR). PHOTO | FILE
A taxation dispute is threatening to derail the ongoing construction of the $5 billion standard gauge railway (SGR) between Mombasa and Nairobi.
The project, scheduled for completion in 2017, could fall behind schedule after a dispute over VAT erupted between major suppliers to the Chinese contractors and the Kenya Revenue Authority (KRA). This is despite the Kenya government and Chinese Export-Import (Exim) Bank releasing $659 million towards the initial phase of the project.
