Kenya’s repayments for SGR line-related loans will more than double in the fiscal year beginning in July.
This has been attributed to the increased principal payments to the Chinese lender for the mega infrastructure project.
The Treasury estimates that debt repayments to Exim Bank of China will reach Sh96.70 billion in the next fiscal year, up from the revised Sh42.67 billion budgeted this year.
The increase in debt obligations to the lender is partially due to a downward adjustment of Sh30.48 billion in the initial budget accepted in June 2020.
Kenya received debt relief from a number of bilateral lenders, including China, to help it cope with revenue shocks caused by the Covid-19 knocks.
Treasury figures tabled in the National Assembly show that redemptions to the Chinese lender will rise to Sh73.42 billion this year from Sh21.23 billion last year, while interest obligations will rise by a modest 8.55 percent to Sh23.28 billion from Sh21.44 billion.
Exim Bank of China agreed to finance 90% of the $3.6 billion (about Sh385 billion at current exchange rates) Mombasa-Nairobi SGR route, putting Beijing ahead of Tokyo as Kenya’s largest bilateral lender.
