China Dismisses Claims of Overburdening Kenyans With Loans Saying That the Loans Are Usually ‘Project Specific.’

 China Dismisses Claims of Overburdening Kenyans With Loans Saying That the Loans Are Usually ‘Project Specific.’

The Chinese government has responded to allegations by some Kenyans that it is piling on debts for Kenya that would be difficult to pay back.

The allegations come at a time that reports indicate that China may be providing large loans to Kenya as a ploy to freeze some of its valuable assets should Kenya default on repayment.

Dr. Zhou Pingjian, the Chinese ambassador to Kenya, has, however, denied the accusations, adamant that China is simply providing loans to Kenya to support its development and does not have any ulterior motives.

All the loans from China are project-specific based on equal-footed consultation and mutually beneficial cooperation. The fruitful and tangible outcomes of our cooperation are solid there for all to see,” He said.

Dr. Zhou claims that the Chinese loans to Kenya are intended to boost economic development, raise tax receipts, boost exports, and earn foreign exchange for a better balance of payments.

He claimed that the loans are provided in good faith and that Kenya or any other African nation that receives them is responsible for using them wisely.

The representative denied further accusations that China is Kenya’s largest creditor. He pointed out that only 10% of Kenya’s foreign loans come from China.

Kenya’s largest creditor? Not China. Kenya owes less than 10% of its public debt, or, less than 20% of its foreign debt, to Chinese creditors. Labelling China as the main creditor of Kenya is an overstatement,” Dr Zhou said.

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