The Kenyan Government has borrowed an excess of US Dollars 9.8 Billion from China. This makes Kenya the highest borrower in the East African region over the last 10 years. Uganda comes second having borrowed 2.9 Billion US dollars, in 10 years. The data was released by the China-African Research Initiative (CARI), at the John Hopkins University of the United States of America. The research shows that Kenya used the loans to expand her transport, communications, manufacturing and energy sectors. This has put both Kenya and Uganda on the International Monetary Fund, IMF, watch list. The two countries are at a debt risk, unless they come up with policies to cut down on expenditures and wage bills. The bulk of Kenya’s Chinese loans went into the construction of the Standard Gauge Railway, SGR, where 5.5 Billion US dollars were pumped.
Each of the East African countries is using about 8 percent of her revenue to service the Chinese loans. The East African countries currently owe the Chinese lenders over 29.4 Billion US dollars.
Ranking of the Eastern Africa Borrowers from the Chinese loan facilities:
- Kenya- 9.8 Billion US dollars
- Uganda – 2.9 Billion US dollars
- Tanzania – 2.34 Billion US dollars
- Rwanda- 289 Million US dollars
- South Sudan- 182 Million US dollars
- Burundi- 99 Million US dollars
Leading Chinese lenders.
The following are the largest Chinese lending institutions, to the East African Countries:
- China Xim Bank- 16.8 Billion US dollars
- The China Development Bank- 6.9 Billion US dollars
- Other Chinese lenders- 6.1 Billion US dollars.
Latest amounts borrowed by the East African Countries and Ethiopia:
- Ethiopia- 652 Million US dollars; borrowed in 2017 (Ethiopia has borrowed over 13.73 Billion US dollars in a period of 10 years).
- Uganda- 85 Million US dollars; borrowed in 2016
- Rwanda- 70 Million US dollars; borrowed in 2016
- Kenya- 64 Million US dollars; borrowed in 2017