dosama
JF-Expert Member
- Dec 25, 2010
- 912
- 957
A large segment of Kenya's Chinese debt is linked to construction of the Standard Gauge Railway (SGR).
Chinese debt stood at Ksh554.88 billion (5.4 billion) or 73.4 percent of total bilateral debt of Ksh756.28 billion (7.3 billion) at the end of September.
Kenya is among countries at the highest risk of losing strategic assets to China over the pile of debt it owes Beijing, global ratings firm Moody’s Investor Service has said in a newly-released report that has raised eyebrows in public finance circles.
Moody’s says in the report that China’s response to sub-Saharan Africa countries facing liquidity pressure has not been uniform or transparent - meaning predictability of credit implications are less clear.
“Countries rich in natural resources, like Angola, Zambia, and Republic of the Congo, or with strategically important infrastructure, like ports or railways such as Kenya, are most vulnerable to the risk of losing control over important assets in negotiations with Chinese creditors,” Moody’s warns.
Mali za Kenya hatarini kutaifishwa na China sababu ya madeni