China Fines Kenya 1.3bn For Defaulting Loan

china fines kenya

Kenya has been slammed with heavy fine by China for defaulting loan

Ad Tegbe f'OyoSouth
Ad Tegbe f’OyoSouth

The Chinese government penalised Kenya Ksh1.312 billion for failing to repay loans used to build the Standard Gauge Railway (SGR) in the fiscal year ending June 2021.

According to documents issued by Kenya’s National Treasury, the fee is for the cost of default on interest at 1% of the due amount.

It was also discovered that the multibillion-dollar project has exacerbated the country’s debt situation due to its annual operating costs. 

For example, in the 2020-21 fiscal year, the project’s operating costs were Ksh18.5 billion vs Ksh15 billion (profits).

It is also predicted that the country’s debt, which now stands at Ksh8.6 trillion, may explode after President William Ruto relocated interior dry port business to Mombasa.

AdeyemiUrban

Nigerian Analytic Journalist, Tech Enthusiast, Food Business Owner, Learner, Giver, Teacher

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