China lists condition for forgiving debt owed by Kenya
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China counters World Bank, and IMF in a move to forgive loans owed to Kenya and other African countries
China counters World Bank, and IMF in a move to forgive loans owed to Kenya and other African countries.
On May 18, the Chinese Ministry of Foreign Affairs listed a key condition for Kenya and other African nations’ debt forgiveness.
The Asian nation contends that if it agrees to the World Bank’s and the IMF’s requests to cancel the loans, then the international lenders ought to do the same.
China in a statement to the Associated Press urged the lenders to actively take part in pertinent steps in accordance with the principles of collaborative action and fair burden.
China also urged the lenders to increase their contributions to assist developing nations in overcoming their challenges.
However, IMF and the World Bank argued that their loans were offered to Kenya and other developing countries at lower interest rates than China’s.
According to the Kenya National Bureau of Statistics (KNBS), as of December 2022, Kenya owed China Ksh804.8 billion, making it the biggest lender to Kenya.
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Reports indicate that most funds borrowed from China were released during former President Uhuru Kenyatta’s tenure.
On April 11, Beijing denied claims it had trapped Kenya and other African countries with debt.
China Foreign Ministry spokesperson Wang Wenbin argued that China was a supportive partner in rescuing all African countries from poverty.
“China is not the source of debt trap for African countries, but a partner lifting them out of a poverty trap,” the Spokesperson stated.
The sentiment came days after economic experts argued that Ruto was turning to the West after a long relationship with China.
President Ruto is said to be leaning more towards the West than the East, where his predecessors; Presidents Uhuru Kenyatta (retired) and the late Mwai Kibaki sought funding.
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