Kenya goes back to the Chinese well for extra $1bn loan

Kenya plans to seek a $1 billion loan from China
The loan is to fund stalled road construction projects

Kenya owes China more than $8 billion in loans

Kenya’s Deputy President, Rigathi Gachagua, has announced that President William Ruto is scheduled to visit China later this month to request a $1 billion loan.

This loan is intended to address the funding gap for stalled road construction projects in Kenya. Many contractors have halted their work due to delayed payments.

Despite Kenya’s existing significant debt to China, President Ruto will seek an additional $1 billion loan. During the negotiations, he will also propose an extended repayment period for the existing debt to China.

Essentially, the president will acknowledge the debt and request more favorable terms, including a slower repayment schedule and additional funding to complete road construction projects.

It’s worth noting that Kenya currently owes China more than $8 billion, primarily from loans obtained during the previous government under President Uhuru Kenyatta, which were used for various infrastructure projects.

Deputy President Gachagua also addressed concerns about government officials’ extravagant spending habits, which have led President Ruto to implement measures such as a ban on non-essential foreign trips by public officials.

Additionally, all ministries have been instructed to reduce their budgets for the upcoming financial year by 10%.

These actions are in response to public complaints about the rising cost of living and government-imposed tax increases.

Kenya goes back to the Chinese well for extra $1bn loan

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