Kenya seeks debt relief from China as railway loan deadline looms
- As Nairobi grapples with a pandemic-induced cash crunch, Chinese embassy confirms negotiations are under way to suspend payments
- East African nation last week received a six-month debt service suspension from Paris Club creditors
The Chinese embassy in Nairobi confirmed that negotiations on suspending Kenya’s debts were ongoing. The East African nation has already received just over US$300 million in debt relief from the Paris Club, an informal group of creditors that aids borrowers in distress, under the G20-led Debt Service Suspension Initiative (DSSI).
Embassy spokeswoman Huang Xueqing said the two countries were “keeping efficient communication” and China was “ready to strengthen coordination with Kenya and assist Kenya in its efforts to address debt challenges”.
Beijing attaches great importance to debt suspension and is “committed to fully implementing” the DSSI, according to the statement. It said China had signed payment suspension agreements with 12 African countries and provided waivers on mature interest-free loans for 15 African countries.
China in November said it had suspended US$2.1 billion of debt service payments from 23 African countries, as the pandemic ravaged economies across Africa.