- China Loans to Africa (CLA) Database Summary 2021 showed that Kenya last received funding from Beijing in 2019
- China reduced its funding to African countries, including Kenya in 2019, down 30% from 2018 payments
- President William Ruto's visit to the country of the Asian continent is expected to open the financing of major infrastructure projects in the country
President William Ruto is in China for a three-day meeting of the Forum on China-Africa Cooperation (FOCAC), which will begin on Wednesday, September 4.
Source: Twitter
Why did Ruto travel to China?
Speaking in the area of Siaya on Friday, August 30, Ruto revealed that the purpose of his visit to the Asian country was to sign deals worth billions of shillings.
The head of state was given the honor of co-chairing the Road and Belt Initiative session.
After arriving on Monday, Ruto met with President Xi Jinping and other Chinese officials on Tuesday, September 3.
Ruto hinted that the Asian country will finance the construction of the Rironi-Mau Summit-Malaba double carriageway and the extension of the Standard Gauge Railway (SGR) to Western Kenya.
What projects does Ruto want China to finance?
- Projects to be funded following this discussion include:
- SGR Phases 2B and 2C (Naivasha-Kisumu-Malaba)
- creation of two-lane Nairobi Northern Bypass
- construction of two carriages Rironi-Mau Summit-Malaba
- establishing a medicinal garden,
- Preferential Trade Agreement (PTA)
- Investment Protection Agreement (IPA).
Trade volume between China and Kenya exceeded 8 billion dollars (KSh. 1.04 trillion) between 2022 and 2023.
Ruto's visit is expected to strengthen joint efforts to bring about various projects in agriculture, food security, creative economy, e-commerce, industry, health, environmental protection and financial services.
When was the last time China lent to Kenya?
According to the China Loan for Africa (CLA) 2021 database summary, Kenya last received funding from Beijing in 2019.
China reduced its funding to African countries, including Kenya in 2019, down 30% from 2018 payments.
“Kenya received $265 million (KSh 34.1 billion) from China that year, after committing to borrow an average of about $1 billion (KSh 128.7 billion) annually between 2010 and 2018,” you read the summary in part.
Between 2010 and 2018, Kenya signed $8.3 billion (KSh 1.1 trillion), which is an average of $920 million (KSh 118.4 billion) per year in commitments with Beijing.
The Ruto government is borrowing KSh 40 billion from China
The Ruto administration borrowed KSh 40 billion from China to revive stalled projects across the country amid taxpayers' concerns that many projects had been put on hold.
The money is expected to finance road projects in 15 counties and is expected to spread to other counties where the roads are spread.
Some of the stalled road projects in the country include the Metembe-Owalo-Rioma-Marani-Ng'enyi/Ting'a-Bobaracho-Ragogo-Kegogi-Nyakoora-Rioma-Gesieka-Nyaore-Mararo road with a length of 64.5 kilometers.
Kaiboi-Kapkatembu-Kipkaren Selia-Kaiboi road with a length of 75.92 kilometers in the road NandiFour Mile-Tuiyo, and Soko-Tuiyo-Aturei.
The list also includes the 43km Barpelo-Tot-Marich Pass road, at a cost of Ksh 15 billion, which connects the counties of Baringo, Elgeyo Marakwet, and West Pokot.
What to know about China's loans to Kenya
Kenyan taxpayers paid the Chinese loan of KSh 107.42 billion in 2022/23 compared to KSh 73.48 billion the previous year, showing a 46.19% growth in repayment.
Outstanding Chinese loan repayments rose to a record high of KSh. 72.07 billion, more than twice in three months.
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Source: TUKO.co.ke
