Kenya to seek $1 billion loan from China, longer repayment period

Kenyan President William Ruto plans to request a $1 billion loan from China to complete stalled road construction projects. This marks a shift in Ruto’s stance on Chinese debt, as his coalition had criticized his predecessor’s borrowing spree from China. Ruto also plans to ask for an extension on the maturity periods of existing loans. The surge in Chinese loans to countries like Kenya has caused criticism and increased debt burdens. The Kenyan government is currently spending half of its revenue on debt repayment. To control expenditure, the cabinet has ordered budget cuts and restrictions on foreign travel by government officials.