After careful consideration of Kenya’s borrowing and utilization requirements, China has established new loan terms.
This is a major departure from China’s previous loan engagements with Kenya and more evidence that China’s lending policy is undergoing a dramatic shift.
China is, however, prioritizing development projects that are in line with the country’s economic plan. One such project is the Belt and Road Initiative (BRI), a massive infrastructure project that spans many African countries.
“As equal partners, we are ready to listen, have productive conversations and enhance our partnership. Since the Chinese may be able to participate in certain of our programs, the two of us will need to mutually agree on the order of our future cooperation.” said china ambassador to Kenya
Although the new Kenyan government may have trouble finding money for China-backed infrastructure projects, China’s ambassador to Kenya assures us that relations would remain amicable.
Beijing has funded major infrastructure projects in Kenya, especially under the presidency of the recently retired Uhuru Kenyatta, and the Kenyan capital, Nairobi, owes her more than Ksh700 billion (almost $42bn).
This change ensures the country will be a participant in the capital market throughout the current and subsequent fiscal years.