Kenya is in talks with China requesting for the suspension of debts in a bid to ease pressure on the economy which was hit hard by the Covid-19 pandemic.
The Chinese Embassy in Kenya said the matter is currently under deliberation, reiterating that China was keen of facilitating Kenya’s request as there was no reason why it could not be done.
“Both sides are now keeping efficient communication through a smooth channel.” The Embassy Spokesperson Huang Xueqing confirmed in statement.
“We stand ready to strengthen coordination with Kenya and assist Kenya in its efforts to address debt challenges.” She said.
Xuequing also said that China was committed to debt alleviation and suspension in African countries, Kenya included.China is also committed to fully implementing the G20 Debt Service Suspension Initiative (DSSI)
“Africa’s need is always China’s concern.” She stressed.
According to the Spokesperson, China has already signed service suspension agreements with 12 countries and provided waivers of matured interest-free loans for 15 African Countries under the G20 framework.
According to the embassy in Nairobi, China has suspended more debt service than any other G20 member.
“The China International Development Cooperation Agency and the Export-Import Bank of China have implemented all eligible debt suspension requests of the developing nations” she said.
The Asian Countries Foreign Ministry shows that Chinese lenders have suspended debt service payments of up to $2.1 billion which is the highest amount among the G20. Collectively, the group has suspended a total of $5.3 billion loan repayments from 44 countries.
Beijing has been renegotiating its loans to African countries due to the financial crisis brought about by the Covid-19 pandemic.