daniel chigunwe
NAIROBI. — Kenya’s President William Ruto sought US$1 billion more in loans from China on Monday, according to National Treasury figures for 2022/2023.
President Ruto was was one of a number of global leaders in Beijing to attend the tenth anniversary meeting of China’s Belt and Road Initiative, the development plan that aims to connect Africa, Asia and Europe through massive infrastructure and energy projects.
A statement from Kenya’s State House spokesman Hussein Mohammed said “the president will deliver a keynote address headlined ‘Digital Economy as a New Source of Growth’ at the High-Level Forum.”
“Additionally, the president will participate in a Kenya-China investors roundtable to emphasize Kenya’s standing as an investment hub for Chinese companies,” said the statement.
One of the signature BRI projects in Kenya is the Standard Gauge Railway line, which runs from the port city of Mombasa to the Rift Valley via the capital, Nairobi. It cost US$4.7 billion to build but has faced numerous challenges, including delays and a low uptake of its freight service.
The SGR which started operations in 2017, was initially intended to go all the way to neighboring Uganda to the west, as well as serving other landlocked countries in eastern and Central Africa. However, those plans were cancelled after Kampala pulled out and opted instead for partnership with a Turkish firm for the construction of its main line.
Kenya’s SGR was mainly constructed using Chinese banks loans and last week, Deputy President Rigathi Gachagua told a local radio station that the president will be asking Chinese officials “to repay the loans slowly, while also borrowing a little money to finish stalled road projects.”
“The Kenya SGR desperately needs cross-border expansion to make it a financially sustainable project. This is another key element in Kenya’s negotiation,” said economist Aly Khan Satchu. – AP
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