In a critical move for Kenya’s financial stability, China has extended a Ksh40 billion loan to the country, just days before President William Ruto’s planned visit to Beijing. This funding is vital for the government, which urgently requires Ksh1.2 trillion to maintain operations this year.

With this new loan, China’s total lending to Kenya exceeds Ksh900 billion, highlighting its significant role in the nation’s economic landscape. “This financial boost comes at a crucial time as the government explores international lenders following the rejection of the Finance Bill 2024 by Kenyans,” said Kiharu MP Ndindi Nyoro, Chair of the National Assembly Budget Committee.

The funds will target the revival of stalled infrastructure projects in 15 counties, where financial constraints have led to local discontent. Nyoro revealed that contractors would return to work by September, signaling relief for communities affected by these delays.

“For the last 10 years, we bit more than we could chew, and that is why we now have a lot of pending projects,” he stated, referring to critical road works like the Tot-Sigor and Kanyuambora roads, which are essential for regional development.

As Kenya’s debt to China has reached $6.7 billion, this latest loan indicates a deepening reliance on Beijing amid ongoing challenges with traditional financial institutions like the IMF and the World Bank. Ruto’s upcoming engagement at the China-Africa Cooperation Summit will be closely monitored as the nation’s financial strategies evolve.