China Responds to Setting Debt Trap for Kenya After Ruto Wooed US

China Foreign Ministry Spokesperson Wang Wenbin speaking on Monday April 10, 2023
China Foreign Ministry Spokesperson Wang Wenbin speaking on Monday, April 10, 2023.
Photo
China Foreign Ministry

China Foreign Ministry Spokesperson Wang Wenbin, on Monday, April 10, denied reports that China had trapped Kenya and other African countries with debt.

In a statement, Wang maintained that China was a supportive partner in helping African countries break free from poverty.

"China is not the source of debt trap for African countries, but a partner lifting them out of a poverty trap," Wang stated.

His response followed an international publication report claiming that China had given loans to African countries totalling Ksh8 trillion between 2000 and 2020, making it a leading creditor.

President William Ruto addressing the Kenya Kwanza Parliamentary Group meeting at State House Nairobi on April 11, 2023.
President William Ruto addressing the Kenya Kwanza Parliamentary Group meeting at State House Nairobi on April 11, 2023.
Photo: PCS

The report alleged that Kenya owed China Ksh1.2 trillion, Angola Ksh5.6 trillion, Ethiopia 1.8 trillion and Zambia Ksh1.3 trillion.

China's response also followed comments from top US officials who accused the country of trapping African nations. China, however, dismissed the allegations reaffirming its commitment to supporting African countries for economic and social growth.

Kenya's Debt Situation

According to the Central Bank of Kenya, the country's debt stands at Ksh9.182 trillion, edging towards the Ksh10 trillion borrowing cap set by Parliament in June 2022.

CBK's statement was confirmed by David Ndii, President William Ruto's Council of Economic Advisors Chairperson, who indicated that the country was grappling with debt issues.

Ndii revealed that the government was conflicted about paying salaries or clearing debts. Ndii added that 60 per cent of the revenue collected was directed at paying loans.

On Monday, April 10, Ndii maintained that the government could still pay the loans despite cash crunch issues.

"We are not insolvent. Our debt is actually payable," Ndii insisted.

Ruto's Relations With the US

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A photo of President William Ruto's economic advisor David Ndii taken in 2017.
Photo
David Ndii

President William Ruto's administration renewed several partnership deals with the US government and investors as the cold war between the West and the East escalates. 

Ruto rolled the carpet to various American investors, offering them incentives to invest in the country.

The Kenya Kwanza administration also vowed to remove impediments hindering trade between Kenya and the US.

Ruto's government adopted a slow approach in dealing with Beijing, having criticised it heavily for supporting the previous regime's projects, some of which it claimed were inflated and overburdened Kenyans.