Sessional Paper No. 09 of 1970 on Kenya Government Guarantees for a Loan to the East African Community for the Purposes of the East African Railways Corporation, by the Government of the United Kingdom and Northern Ireland and for a Loan by the Government of the Federal Republic of West Germany, to the East African Railways Corporation and of Commercial Credits by Associated Electrical Industries Limited and Andrew Barclays Limited to the East African Railways Corporation

Abstract

In order to enable the Railways Corporation to purchase diesel locomotives of various types necessary to replace obsolete steam locomotives and to provide the additional power necessary to meet operational requirements the East African Community sought offers of financial assistance from interested Governments overseas. In the event, and having regard to such matters as price, technical suitability, manufacturer's competence and the financial assistance terms supporting the purchases, orders for a total of 70 diesel locomotives have been placed. Of these 35 are being manufactured in Canada, 25 in the United Kingdom and 10 in West Germany. The Canadian order will be covered entirely by loan finance provided by the Canadian Government in respect of which no guarantees are required from the three East African Governments. In respect of the loan finance from the Government of the United Kingdom and Northern Ireland, the credit finance from Associated Electrical Industries Limited and Andrew Barclay Limited who are supplying (the 25 British manufactured locomotives and the loan finance from the Government of the Federal Republic of West Germany however joint and several guarantees by the Governments of Kenya, Tanzania and Uganda are required.