In a recent interview with CTGN, a prominent Chinese media outlet, President William Ruto spoke about the mounting concerns surrounding the alleged Chinese debt trap that has raised alarms among experts and the public.

President Ruto firmly dismissed the notion of a Chinese debt trap in Kenya and shed light on the country’s financial agreements with various global lenders, including the World Bank, the International Monetary Fund (IMF), and the European Union.

Ruto emphasized that the notion of a Chinese debt trap was a misconception propagated by the media. He stated, “There are myths, rumors, perception, and then there is reality. The reality is that China is not our largest debt holder.”

The President went on to underscore the mutually beneficial relationship between Kenya and China, aimed at fostering economic growth in both nations. He highlighted the importance of bilateral negotiations to ensure fairness for the people of Kenya and their partners.

Ruto clarified that Kenya’s approach to borrowing was not about taking advantage of other countries. Contrary to the prevailing concerns, Kenya aimed to secure loans responsibly.

According to a report by the IMF, China’s debt accounts for 12% of Africa’s private and external debt. As of March, Kenya’s debt to China amounted to Ksh946 billion.

President Ruto also commended China for its role in the construction of the Standard Gauge Railway (SGR), a critical infrastructure project that has significantly improved transportation within Kenya. He revealed ongoing discussions with neighboring countries to expand the SGR network, thereby enhancing connectivity across the region.

President Ruto’s remarks shed light on Kenya’s approach to managing its debt and emphasized the importance of fair and balanced negotiations in international financial relations.