Recent analysis shows Kenya and several other African nations moved from receiving nearly Ksh3.87 trillion (USD30 billion) in Chinese loans between 2010 and 2014 to paying out about Ksh2.84 trillion (USD22 billion) between 2020 and 2024, pointing to a dramatic reversal in financial flows. Photo African Marketing ConfederationThe government borrowed roughly Ksh903.07 billion (USD7 billion) from Chinese lenders to build the railway, expecting that freight and passenger revenues would eventually offset repayment costs. As a result, Kenya now pays about Ksh129.01 billion (USD1 billion) annually in principal and interest to Chinese lenders, placing additional strain on a national budget estimated at around Ksh4.26 trillion (USD33 billion). Data indicates Chinese lending to Africa has fallen by nearly 90 per cent from its peak in 2016, with banks issuing just over Ksh258.02 billion (USD2 billion) in loans across the continent in 2024. Experts say the tightening of Chinese financing could complicate Kenya’s ambitions to roll out new mega infrastructure projects, many of which previously depended on concessional loans from Beijing.

Source: Daily Nation March 06, 2026 14:12 UTC