China fines Kenya Ksh1.3 billion for failing to repay loans for standard gauge railway

China fines Kenya Ksh1.3 billion for failing to repay loans for standard gauge railway

The Chinese government has fines Kenya Ksh1.312 billion for failing to make loan payments on the Standard Gauge Railway (SGR) in the fiscal year ending June 2021.

According to documents made public by Kenya’s National Treasury, the fee pertains to the cost of interest default, which is 1% of the amount that is owed.

Additionally, it was discovered that the multi-billion dollar project’s annual operating expenditures have exacerbated the nation’s debt crisis. For instance, in the 2020–21 fiscal year, the project’s operating expenses were Ksh18.5 billion compared to Ksh15 billion (profits).

Additionally, it is predicted that the nation’s debt, which is already Ksh8.6 trillion, will increase sharply now that President William Ruto has moved operations at the inland dry ports back to Mombasa.