This archive report was first published on 9 June 2020.
Kenya's national debt has reached a staggering Sh6.2 trillion, with the country seeking debt relief from China. According to Treasury CS Ukur Yattani, Kenya is still in talks with China to secure a debt relief deal.
Kenya had initially declined to participate in the G-20 led debt relief initiative, citing restrictive terms. Instead, the country opted for bilateral talks with Beijing, which are still ongoing.
Yattani expressed concerns that the G-20 deal's terms could limit Kenya's access to international capital markets and hinder its ability to finance its deficit later in the year.
Kenya is engaging creditor countries individually, including Germany, Sweden, Japan, China, and France, to secure moratoriums on debt service payments lasting around a year.
As part of the G-20 nations' debt relief program, China had agreed to delay loan repayments for 77 low-income countries, with the temporary relief starting on May 1.
Kenya could have saved approximately Sh71 billion from the debt service suspension by G20, but the country is set to spend Sh904.7 billion on public debt servicing expenses in the new financial year.
