The Chinese banks fined Kenya Ksh1.312 billion ($10.8 million) in the year ended June for loan defaults, according to Treasury documents seen by Business Daily. Kenya tapped over half a trillion shillings from Chinese lenders, led by the Export-Import Bank of China, to fund the construction of the SGR from Mombasa to Naivasha. SGR posted an operation loss of Ksh3.4 billion ($28 million), and wired Ksh22.7 billion ($187.6 million) in loan repayments in the year to June. But the lenders, especially Exim Bank of China, opposed Kenya’s application for a debt repayment holiday in a standoff that delayed disbursements to projects funded by Chinese loans. The opposition from Chinese lenders forced Nairobi to drop its push for extension of the debt repayment holiday to avoid straining relations with Kenya’s biggest bilateral creditor.

Source: Daily Nation October 13, 2022 18:56 UTC