Kenyan President William Ruto is set to seek a $1 billion loan from China during his upcoming trip to Beijing, according to his deputy, Rigathi Gachahua. The primary purpose of this loan request is to address stalled road projects in Kenya. Additionally, President Ruto will explore the possibility of extending the repayment period for existing debts owed to China.
As it stands, Kenya has accumulated a debt of over $8 billion from Chinese loans. These loans were initially intended to finance crucial infrastructure projects, including the Nairobi expressway. However, many of these projects have hit roadblocks as contractors grapple with unpaid bills.
Gachahua emphasized that securing a $1 billion loan would enable the government to settle outstanding payments owed to contractors. This, in turn, would encourage them to resume work on these critical road projects. The ultimate goal is to ensure that while addressing the debt, Kenya can also successfully complete and maintain its essential transportation infrastructure.
Furthermore, President Ruto will engage in discussions with Chinese officials regarding the possibility of extending the repayment timeline for these debts. These negotiations aim to strike a balance between honoring financial obligations and ensuring the completion of vital infrastructure projects for the nation's benefit.