China Locks Kenya Out of Loan Relief Programme Program-Here’s why?

Joy Waweru | 1 year ago
Chinese President and Kenyan President File:Courtesy



A program set out by the superpower to provide loan relief to African countries does not include Kenya.


The Foreign  Affairs minister Wang Yi, the programme aims to empower the less developed countries that are struggling to service their debts. He also said, “ the partnership demonstrated China’s commitment to fostering stronger economic ties with the African continent”.


Following the elevation of Kenya from a less developed country to a lower-middle income earner, the nation will hence e locked out of the list of beneficiaries. Kenya is classified as East Africa’s largest economy and joined the league of the World’s middle-income countries.


This partnership was announced during the Forum on China-Africa cooperation. The goal is to cement ties between China and its African counterparts.


We will also continue to increase imports from Africa, support the greater development of Africa’s agricultural and manufacturing sectors, and expand cooperation in emerging industries such as the digital economy, health, green and low-carbon sectors," the Minister of Foreign Affairs stated.


This deal will see 17 African countries receive 23 matured loans that are interest-free.


China is the world’s second-largest economy. Second, only to the world bank, China is the next biggest creditor to Kenya.


President Uhuru and his government has taken loans from China to build the Standard Gauge Railway, roads, and railways.


China’s “Belt and Road” initiative provides requisite financing to countries without proper infrastructure inter-connectivity. The United States among other critics, says the program is crippling developing nations with debt.

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