Kenya Loans From China

The government is negotiating with china for a loan of about sh370 billion to complete the third phase of the standard gauge railway.

Kenya loans from china. According to the scmp kenya railways and crbc have defended their joint contract claiming the kenyan government negotiated with the exim bank of china for two loans each estimated at 16 billion to finance the sgr project. China gave kenya sh520 billion 520237 million for the period ending december 2017. Kenyas rating cut signals expensive foreign loans. By 2010 china had lent kenya a.

The loan one of many china has given to the. Kenyas debt to china outpaces the rest 2015 the world bank has warned that kenyas level of borrowing from china could be close to unsustainable. A huge chunk of kenyas loan was borrowed in 2014 at sh370 billion as kenya began building the first phase of the standard gauge railway sgr line from mombasa to nairobi that cost sh327 billion. Kenya secured a 600 million loan from china last week to help towards paying for a 6 billion budget deficit that the government expects this year.

Chinas s debt to kenya has increased more than seven times from sh63 billion in 2013 overtaking japan as the countrys leading bilateral lender to kenya. China was the top country that advanced bilateral loans to kenya in 2017 latest data from the treasury shows. Between 2006 and 2017 kenya has taken large loans of at least 98 billion sh104377 billion from china. Chinese debt accounts of 72 of overall foreign debt.

China is kenyas second biggest creditor and the exim bank of china is the top recipient of kenyan interest. But in its first year of operation the project reported losses equivalent to 98 million rendering kenyas servicing of the loans unmanageable. China had also declined to approve ugandas loan request for its first phase of sgr from malaba to kampala. The caution from the us based international.

Standard gauge railway and road network expansion was the main use of the debt borrowed from china.