Kenya Navy and us marine test fire a heavyweight
Mark 60 CAPTOR (En
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Torpedo)torpedo from the Kenya navy ship Uhuru in this 2009 photo
Random cool picture: US and Kenya Navy training off Mombasa coast in the Indian Ocean | Breaking News Kenya
Kenyahas said it will spend billions to be the naval power in Indian ocean region alongside India
Parliamentary Budget Committee has recommended Sh3.6 billion payment for a contract entered in 2003 for construction of a Kenya Navy ship.
Taxpayers will have forked out more than Sh5 billion for the vessel built in Spain if the payment is made in July as recommended in a report tabled in the House on Wednesday.
This is Sh1 billion higher than the Sh3.9 billion initial cost of the ship expected to be delivered on July 2 if full payment is made to Spanish manufacturer, Euromarine.
In 2007, Parliament heard Sh1.55 billion had already been paid to the Spanish contractors before the process was stopped over grand corruption.
The report tabled on Wednesday by committee chairman Adan Keynan says the Defence Ministry and Euromarine have agreed on the payment terms and the delivery schedule of the naval vessel.
approve payment
In total, the Government is required to pay 34 million Euros (Sh3.6 billion) so that the ship christened MV Jasiri can be delivered by July 2.
It adds the Treasury provided Sh1 billion in the supplementary budget as part payment.
The balance is Sh2.9 billion, according to the report, although calculations indicate the difference has been prioritised in the budget for the 2012/13 financial year.
On May 2, 2007 then chairman of the Defence and Foreign Relations Committee GG Kariuki implored Parliament to approve the payments after leading a fact-finding mission to Spain.
The then Laikipia West MP explained the money, which was involved in building the ship was Sh3.9 billion of which Sh1.55 billion had been paid.
By June 2006, he added, Sh1.833 billion had not been paid, which included interest, penalties and installments.
He said the ship was 98 per cent ready and only remained to be fitted with armaments. And subject to full payments officers would be trained on how to operate the vessel.
The House heard the MV Jasiri weighs 140 tonnes, was 85 metres long and 13 metres wide. It was billed as the only one of its kind in East and Central Africa.
Standard Digital : Kenya : Budget team approves Sh3.6b for Kenya Navy ship..