Kenya paid China Sh29bn to ease debt repayment standoff

Kenya paid China Sh29bn to ease debt repayment standoff

Economy

Kenya paid China Sh29bn to ease debt repayment standoff

Thursday December 09 2021 china

President Uhuru Kenyatta and Chinese President Xi Jinping at the Hanque Square, Beijing, China. PHOTO | COURTESY

BDgeneric_logo By CONSTANT MUNDA
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Summary

  • Treasury documents reveal that Kenya paid the billions in a period when Chinese lenders, especially Exim Bank, had opposed Kenya’s application for a debt repayment holiday.
  • Kenya asked for an extension of the debt repayment moratorium from bilateral lenders, including China, by another six months to December 2021, saving it from committing billions to Beijing lenders.

Kenya wired Sh29.86 billion to China in the quarter to September 2021 to ease a standoff over debt repayments that delayed disbursements to projects funded by Chinese loans.

Treasury documents reveal that Kenya paid the billions in a period when Chinese lenders, especially Exim Bank, had opposed Kenya’s application…

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