The government of Kenya now owes the People’s Republic of China Sh650 billion.
The debt burden to the Asian country ballooned in the last 12 months after the government sought for more funds for the construction of the Standard Gauge Railway (SGR).
During the said period, President Uhuru Kenyatta-led government acquired extra Sh97 billion from the foreign nation.
Sh44.7 billion of the amount has been allocated to the second phase of the SGR, which runs from Nairobi to Naivasha while Sh35.2 billion has been used as instalment for the first phase of the railway, which stretches from Mombasa to Nairobi.
As of June 2018, the Kenyan government owed China Sh553 billion before it requested for more funds for different projects. China has emerged as the leading business partner of Kenya.
Before his suspension, Treasury CS Henry Rotich said that the government was working to ensure it meets its debt obligations.
“Kenya continues to meet its debt service obligations promptly with no accumulation of debt arrears,” he said.
He added: “Public debt is within sustainable levels and the debt burden is projected to decline over the medium-term as we implement a fiscal consolidation plan.”