Loans -China has reportedly shut down all further loaning to Kenya after the latter seemed to be struggling with repayments.
Reports reaching Pesatoday.com desk confirmed that Chinese Government has already frozen all active loans to the country due to delays in repayments. By April 2021 , sh 758 billion had been loaned to Kenya alone.
Further, all China funded projects are now facing financial challenges with contractors working on them complaining of delayed payments from some banks e.g Exim Bank of China.
Business Daily of Friday July 2, showed that the Chinese Exim Bank is nolonger comfortable with the way Kenyan government is handling its repayment terms and unnecessary requests for further extensions of the suspension beyond June.
“Payment to contractors working on Chinese projects and paid under direct method have delayed since last month. We are told Chinese banks are not settling invoice because of the moratorium.” Chief Executive Officer CEO in a State corporation was quoted by Business Daily.
But according to Kenyan government, it has no knowledge on who is requesting debt extension of the suspension. The Treasury also affirmed its commitment in servicing all its external Loans.
Asked to comment on the developments, Treasury Cabinet Secretary Ukur Yatani simply answered with, “Not true” statement.
China has been Kenya’s biggest foreign creditor, having lent sh 758 billion to Kenya as at April 2021 to support infrastructure projects.
