Kenya to Seek $1 Billion Loan from China

Kenyan President William Ruto intends to request a $1 billion loan and a debt restructuring plan from China, despite having criticized heavy borrowing from Beijing in the past, according to his deputy's announcement on Friday.

Kenya, one of East Africa's largest economies, has accumulated loans exceeding 10.1 trillion shillings ($68 billion), which equals 67% of its Gross Domestic Product (GDP).

The cost of servicing this debt, especially to China, has increased as the value of the Kenyan currency plummeted to record levels, reaching about 148 shillings to the dollar, according to treasury data.

Vice President Rigathi Gachagua stated that Ruto will travel to China and request "more time to repay the debt" and $1 billion to complete road projects that have been delayed due to a lack of funding.

Gachagua emphasized in a statement to a local radio station, "We are a responsible government, and we cannot say that we will not repay the debt."

He added, "He will speak to them and ask for at least a billion dollars to pay the contractors."

It is not immediately clear when Ruto will visit Beijing, but the President has not visited the economic giant in East Asia since his closely contested election victory in August 2022.