To trap Kenya with loans? Not our style – China now ready to forgive debts owed by Kenya but with one condition – Look!

 

Thursday, May 18, 2023 – China has denied claims it had trapped Kenya and other African countries with debt.

In a statement, Chinese Foreign Affairs Ministry Spokesperson Wang Wenbin argued that China was a supportive partner in rescuing all African countries from poverty.

“China is not the source of debt trap for African countries, but a partner lifting them out of a poverty trap,” the Spokesperson stated.

At the same time, the Chinese Government listed a key condition for forgiving debt owed by Kenya and other African countries. 

According to the Asian country, if it was to accept demands from the International Monetary Fund (IMF) and the World Bank to forgive the loans, then the multilateral lenders should also follow suit.

It asked the lenders to actively participate in relevant actions in accordance with the principle of joint action, and fair burden.

Furthermore, China called upon the lenders to contribute more to help developing countries overcome the difficulties.

However, IMF and the World Bank argued that their loans were offered to Kenya and other developing countries at lower interest rates than China’s.

According to the Kenya National Bureau of Statistics (KNBS), as of December 2022, Kenya owed China Ksh804.8 billion, making it the biggest lender to Kenya.

Reports indicate that most funds borrowed from China were released during former President Uhuru Kenyatta’s tenure.

The sentiment came days after economic experts argued that Ruto was turning to the West after a long relationship with China.