This archive report was first published on 2 July 2021.
Kenya's financial struggles have led to a cash crunch in Chinese-funded projects, with contractors reporting delayed payments from banks like Exim Bank of China.
As of April 2021, China had lent Kenya Sh. 758 billion, but the country's inability to repay debts has prompted China to freeze all active loans.
According to a report in the Business Daily on July 2, 2021, Chinese lenders are uncomfortable with the terms of Kenya's request for extension of the debt service suspension beyond June.
“Payment to contractors working on Chinese projects and paid under direct method have delayed since last month. We are told Chinese banks are not settling invoices because of the moratorium,” a chief executive officer was quoted as saying.
However, Kenya has denied any knowledge of debt suspension by China, with Finance Cabinet Secretary Ukur Yatani stating, “Not true,” in response to the China Kenya loans issue.
