China Halts Loans to Kenya Citing Lack of Commitment

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Chrispen

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According to Pesatoday.com, Chinese Government has frozen all active loans to Kenya due to that reason. Upto now, sh 758 billion had since been loaned to Kenya alone by April 2021.

Well-placed sources claim that all Chinese funded projects are now facing financial upheavals with contractors working on them complaining of delayed payments from some banks e.g Exim Bank of China.

Business Daily, on Friday July 2, showed that China’s Exim Bank is nolonger comfortable with the way Kenyan government is handling the repayment of their loans and unnecessary request for extensions.

This has left many Chinese-funded projects facing a biting cash crunch, with many contractors now left stuck.

“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.” a top civil servant was quoted by the Business Daily.

But this fact has been disputed by government of Kenya which has rubbished claims that it is experiencing a fallout with their Chinese counterparts.

“No its not true,” Ukur Yatani refuted.

China has been Kenya’s biggest foreign creditor, having lent a whopping sh 758 billion to Kenya as at April 2021 to support infrastructural projects.