Breaking: China Stops Kenya Loans

China has frozen the distribution of infrastructure loans to Kenya. This comes as a result of China’s Exim Bank citing displeasure of Kenya seeking to extend debt relief from June to December 2021. Kenya’s intention for an extension for relief was revealed by the International Monetary Fund (IMF).
In January 2021, it was agreed that Kenya would adhere to a 6-month debt relief period allowed by China and other G20 nations. This was approved and signed under the Debt Service Suspension Initiative (DSSI). The initiative means that bilateral official creditors are, during a limited period, suspending debt service payments from lower-middle-income countries that put in a request.

Treasury CS Ukur Yatani and Kenyan President Uhuru Kenyatta with Chinese President Xi

Forged in December 2020, the plan is meant to cushion nations whose top priority would be to focus resources in combating the ongoing health pandemic. The framework’s purpose is to safeguard the livelihoods of the world’s most vulnerable persons. Kenya qualified for this privilege after the government illustrated the diminishing effects of the current pandemic on the collection of revenue. Funds made available to local contractors were suddenly halted when Kenya sought to extend the above-stated debt period. As a consequence, Chinese-funded projects in Kenya face a possible lack of liquidity.

Chinese Ambassador to Kenya Wu Peng (Left) and Foreign Affairs Cabinet Secretary Raychelle Omamo

According to Business Daily, remissions made in the direct payment method to contractors working on Chinese projects have been stalled since last month. This method has forced Kenyan companies relying on Chinese loans to send notices for supplier payments to Chinese banks through the National Treasury.

The wealthy countries owning this infrastructural debt are Belgium, Canada, Denmark, France, Germany, Italy, Japan, Republic of Korea, Spain, and the USA. The DSSI (Debt Service Suspension Initiative) amended the payment period of Ksh 32.9B in principal and interest to be due between January and June. This loan is supposed to be serviced in the next four years with a one-year grace period.

Nonetheless, China is the biggest owner of this loan which was paid out by national banks: China Development Bank and Exim Bank of China. The communist Republic has therefore taken to reviewing its terms with Kenya exclusively but following requirements of the Paris Club of international creditors.

However, Treasury CS Ukur Yatani and other Treasury officials have denied any slow-down in receiving and distributing loan monies from China. They asserted that the country had received affirmative responses from states where they sought an extension of the debt repayment relief.

Good news

Kenya : Hii kuma ni yangu, and i’m at liberty to take it whenever i want, East , West, North or South .

China : Kweli Kunguru hafugiki ! ! !

China is jilted Lover. Can’t stand seeing Uhuru all over the West getting all these loans.

Kenya gave China the middle finger on the free trade deal and opted for Ameruca. So their you go.

So expressway imekwama ivo tu ama?

Utakam tu nayo fiti. Pale inaisha unafanya Unique Stunt kama kwa GTA unaland Mombasa Rd below na safari yaendelea kama kawaida:D

Hio loan kuna venye naona hatutalipa na hakuna kitu Chinese watafanya.

Kenyans are not good people.

Hehehe. True .
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