Kenya wants to renegotiate a multibillion-dollar loan from China that was used to build a major railway.
Transport Minister Kipchumba Murkomen, told lawmakers that Kenya is up to date on its payments but cannot continue with the current 20-year schedule.
Answering questions from a parliamentary committee, Murkomen said the country will have to ask for an extended period to pay, especially in regard to the loans used to build what is known as the Standard Gauge Railway.
Kenya borrowed U.S.$5 billion to build the railway line from the port of Mombasa to the city of Naivasha, west of Nairobi.
The railway was opened for business in 2017 and the government forced businesses to transport goods by rail to help repay the loan.
Kenya’s previous government is accused of excessive borrowing to finance development projects, which has also increased corruption. China also financed a 27-kilometre expressway in Nairobi, costing U.S.$734 million.
No comments:
Post a Comment
Note: only a member of this blog may post a comment.