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China has stated its readiness to suspend Kenya’s debt as a
way of aiding African nations deal with the pandemic. According to the Chinese
Embassy in Kenya, China is more than ready to stand with Kenya and strengthen the
bond between the two countries.
“Africa’s needs are always China’s concern,” stated the Embassy
“We stand ready to strengthen coordination with Kenya and assist Kenya in its
efforts to address debt challenges”.
So far, China has already signed debt service suspension
with over 10 African states and provided waivers of matured interest-free loan
for 15 countries under the G20 framework.
Both China International Development Cooperation Agency and
the Export-Import Bank of China has executed debt suspension requests of
developing countries.
The Embassy added, “China attaches great importance to debt
suspension and alleviation in African countries including Kenya and is fully
committed in implementing the G20 Debt Service Suspension Initiative”
Kenya is a beneficiary of loans from China, through these
loans, Kenya has managed to fund development projects such as the Thika Super
Highway and the ongoing construction of Westlands-Jomo Kenyatta Airport Express
Way that is aimed decongesting traffic to the airport.
Conclusion
Considering the devastating
effects of the pandemic in the country, Kenya will likely need a more sustainable
debt relief strategy that goes beyond the 6-month grace period. Importantly,
this will call for more in-depth negotiations between the two nations in order
to ensure that they mutually benefit from one another.