Kenya faces legal suit, diplomatic fallout and financial penalties from China after courts ordered disclosure of confidential standard gauge railway (SGR) contracts and loan agreements.

The Court of Appeal last week upheld a ruling compelling the government to release secret documents tied to the $4.5 million (Sh580.5 billion) Mombasa-Nairobi railway project.

State lawyers repeatedly warned the courts that exposing the documents to public could breach confidentiality clauses signed with Chinese entities, damage bilateral relations with Beijing and trigger serious contractual repercussions for Kenya.

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