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Kenya to save Sh27 billion from China debt service suspension deal

THE STANDARD By Reuters | January 20th 2021 at 15:20:33 GMT +0300 CS Ukur Yatani (PHOTO: FILE) Kenya has secured a debt repayment moratorium from China which will save it Sh27 billion in the period to June, its National Treasury Cabinet Secretary said on Wednesday. The government won a debt repayments relief agreement with the Paris Club of international lenders last week, and is looking for deals with non-Paris Club bilateral creditors like China. China is one of the country’s biggest foreign creditors, having lent it billions of dollars to build rail lines, roads and other infrastructure projects in the past decade. Ukur Yatani, the Cabinet Secretary National Treasury, said the deal had already been clinched, although China said on Monday it stood ready to help Kenya with debt, without offering more details.

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