CHINA stops giving UHURU’s government loans due to mismanagement and non-payment – LOOK!

 Friday, July 2, 2021 – The Chinese Government has frozen giving loans to the Kenyan Government over what public finance experts said is mismanagement and non-payment of loans.

Sources from the Treasury said some of the officials from Chinese Exim Bank are uncomfortable with the terms of the Kenyan request for extension of the debt service suspension beyond June.

“Payment to contractors working on Chinese projects and paid under direct method have delayed since last month. We are told Chinese banks are not settling invoices because of the moratorium,” the source who requested anonymity said.

China is one of Kenya’s biggest foreign creditors, having lent Ksh758 billion ($7.02 billion) as of April 2021 to build rail lines, roads, and other infrastructure projects in the past decade.

On Thursday, the Chinese embassy in Nairobi acknowledged the funding hitch, adding that the matter was being addressed by officials of the two countries.

“To my knowledge, the relevant parties of the two sides are in close communication on specific issues under the DSSI framework,” said Huang Xueqing, the Chief of Information and Public Affairs Section at the embassy.

“They are in communication with each other on this matter also under the framework of DSSI (Debt Service Suspension Initiative (DSSI),” Huang added.