Kenya denies defaulting China loan
Kenya says it has not defaulted on its loan repayment obligations to China.
The outgoing National Treasury Cabinet Secretary Ukur Yatani made the clarification on Thursday.
He also rubbished claims the county had been penalized Sh1 billion for failing to settle its debt obligations to China within the stipulated time.
“We wish to state categorically that Kenya has never defaulted on the settlement of its debt service obligations to any of its creditors,” said Yatani.
Kenya has borrowed heavily from China in the recent past, with some of the debt monies channeled towards building the Standard Gauge Railway from Mombasa to Naivasha.
The modern railway is expected to extend to the bordering countries of Uganda, South Sudan and Ethiopia.
Yattani made the response amid reports the move by President William Ruto’s administration to revert Port operations to Mombasa from Naivasha had affected the income realised from the Standard Gauge Railway.
The Port of Mombasa serves as a crucial transit for cargo to neighboring countries.
The outgoing CS clarified all the public debts including SGR loans are paid from the Consolidated Fund in accordance with the Public Finance Management Act of 2012.
“Debt service is a first charge on the Consolidated Fund and takes precedence over other forms of expenditure.”
Further, the CS assured the country’s creditors, development partners, investors as well as the general public that Kenya’s financial position is sound and robust.