Kenya to request US$1 billion loan to resume work on road construction projects

During an upcoming visit to Beijing, President Ruto of Kenya plans to request a US$1 billion loan from China to resume work on stalled road projects.

Africa was a major focus of President Xi Jinping’s Belt and Road Initiative (Photo: AdobeStock)

He will also request an extension of the repayment period for existing loans, which make up around 13% of the country’s external debt totalling US$8 billion.

Ruto’s deputy, Rigathi Gachagua, provided this information during an interview with the Inooro FM radio station. It was also later reported by news agency Reuters later.

Gachagua said that Ruto will tell Chinese officials, “Can we talk to see if you can add us time, so we can pay slowly, and add us a little money so we can finish road construction?”

Last year, Ruto was elected president of Kenya and he criticized his predecessor, Uhuru Kenyatta’s borrow-to-build policy. During Kenyatta’s 10-year reign, Kenya’s external debt increased more than four-fold to $63.6 billion.

According to Reuters, to address this issue, the cabinet ordered all ministries to reduce their budgets by 10% and the president’s office has imposed restrictions on foreign travel by government officials. This move is seen as an effort to control the country’s increasing external debt.

Africa was a major focus of President Xi Jinping’s Belt and Road Initiative, launched in 2013 to extend China’s geopolitical and economic influence through a global infrastructure development push inspired by the ancient Silk Road.