Kenya’s debt repayments to China for infrastructure projects has more than doubled to a record Sh. 73.48 billion.
This follows the increased clearance of principal sums after the grace period lapsed.
According to data from the National Treasury, the amount has increased by 135.15 percent to Sh. 73.48 billion from the Sh. 31.25 billion that was repaid in the year ended June 2021.
In the year ended June 2021, Kenya had enjoyed cheaper repayments due to a moratorium that had been offered by the Chinese lenders following the economic impact of the 2020 pandemic.
According to the National Treasury, the latest repayments were sent to Exim Bank of China and the China Development Bank. The money was paid in two batches of Sh. 43.62 billion in January 2022 and Sh. 29.86 billion in July 2021.
These repayments accounted for 81.4 per cent of the Sh. 90.26 billion that Kenya dedicated to servicing bilateral debt in the nine-month period through March.
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Kenya’s repayments are expected to rise even higher due to the weakening of the local currency. The Kenya Shilling has been on a downward trend and is currently trading at above Sh. 116 to the US dollar.