Kenya’s Foreign Exchange Reserves Fall Due to Repayment of Railway Loans to China

The Kenyan government cut a check for $226 million last week to service its debts to the China Exim Bank for the loans used to build the Standard Gauge Railway. The Kenyan Central Bank singled out the repayment as a reason why the country’s foreign exchange reserves dropped from $7.95 billion to $7.73 billion.

China stands apart from Kenya’s other bilateral lenders who’ve agreed to extend debt servicing deferrals. Also, these repayments come at a very bad time for Kenya as the country struggles to protect its forex reserves that will help offset the damage from the year-long depreciation of its own currency. (THE STANDARD)

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The post Kenya’s Foreign Exchange Reserves Fall Due to Repayment of Railway Loans to China appeared first on The China Global South Project.

source https://chinaglobalsouth.com/2022/07/27/kenyas-foreign-exchange-reserves-fall-due-to-repayment-of-railway-loans-to-china/