In a report by the Business Daily, the national treasury has now been forced to resort to other measures to service the crippling loan including using a loan from the International Monetary Fund (IMF) to pay China.
Treasury’s director for management of public debt Haron Sirima in an interview with Business Daily said that it seeks approval to convert Special Drawing Rights (SDR) assets to fill a huge cash gap.
Treasury began repaying the Chinese loans in July 2021.
The move is likely to elicit heated reactions from Kenyans who are feeling the burden of a dwindling economy, coming just days after the fuel prices hit record high in latest review.
Recently, Kenya failed to get an extension for debt repayment with January for a period of six months to December.
China’s Exim Bank were left worried with Kenya’s request for debt suspension and forced Uhuru’s government to drop the request for a debt holiday.
The Treasury has now been forced back onto the drawing board and seeking loans from developed nations to repay the ballooning debt.
Kenyans should now brace themselves for tough conditions from IMF before accepting to service the debts running into trillions.
Content created and supplied by: Psilgich (via Opera News )
Opera News is a free to use platform and the views and opinions expressed herein are solely those of the author and do not represent, reflect or express the views of Opera News. Any/all written content and images displayed are provided by the blogger/author, appear herein as submitted by the blogger/author and are unedited by Opera News. Opera News does not consent to nor does it condone the posting of any content that violates the rights (including the copyrights) of any third party, nor content that may malign, inter alia, any religion, ethnic group, organization, gender, company, or individual. Opera News furthermore does not condone the use of our platform for the purposes encouraging/endorsing hate speech, violation of human rights and/or utterances of a defamatory nature. If the content contained herein violates any of your rights, including those of copyright, and/or violates any the above mentioned factors, you are requested to immediately notify us using via the following email address operanews-external(at)opera.com and/or report the article using the available reporting functionality built into our Platform See More