China has released a statement on the Kenyan debt situation.
According to the Asian economic powerhouse, it is ready to suspend Kenya's debt that amounts to over Sh700 billion.
The revelation comes barely a week after Kenya received the pardon from the Paris Club of international creditors.
Kenya made a request for its overwhelming debt obligations to be temporarily suspended to allow the economy to recover from the negative impact of the Covid-19 pandemic.
In a statement, Chinese Embassy spokesperson Huang Xueqing confirmed that both channels were keeping efficient communication through a smooth channel.
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The embassy notes that Beijing would accede to a debt relief request from Kenya to strengthen coordination.
The suspension is part of the Asian country's measures to cushion developing countries from Covid-19 pandemic.
“Africa’s need is always China’s concern. We stand ready to strengthen coordination with Kenya and assist Kenya in its efforts to address debt challenges. Both sides are now keeping efficient communication through a smooth channel," stated the Embassy.
So far, China has suspended 12 African countries making it the country that has signed suspension agreements with the highest number of countries.
“China attaches great importance to debt suspension and alleviation in African countries including Kenya and is committed to fully implementing the G20 Debt Service Suspension Initiative (DSSI),” continued the embassy.
Kenya owes China more than Ksh725 billion in bilateral debt with the total debt in the country expected to cross Ksh10 trillion mark.
