The Treasury has confirmed that it is in talks with the Chinese government to reduce the amount of money that the government will pay as loan repayment for the construction of the Standard Gauge Railway. To achieve this, Kenya is in talks with China to convert the dollar-denominated railway loan into Chinese yuan, an aide to the Finance Minister John Mbadi told Reuters on Wednesday.
Kenya entered into a USD 5 billion (Ksh 646.2 billion) agreement with China to fund and construct the Standard Gauge Railway (SGR), one of the largest Chinese-backed infrastructure projects in the continent.
According to Bloomberg, plans to convert the loan into Chinese yuan surfaced on Wednesday, with reports indicating that the move would save Kenya money by tapping into lower interest rates in China compared to those in the United States.
President William Ruto inspecting a guard of honor with his Chinese counterpart Xi Jinping during his State visit to China on April 24, 2025.
