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Kenya has reacted to concerns by the United States that Chinese loans were pushing African countries, including Kenya into unsustainable debt, that has weakened their ability to generate employment opportunities for jobless youth.
Addressing the press in Nairobi on Thursday, Foreign Affairs Cabinet Secretary Monica Juma noted that Kenya’s engagement with China, serves the country’s best interest and adds value to Kenyans.
“This country is engaging with the partners from across the world driven by our own interest and for our own value,” She said, but refused to comment further on the concerns by US.
At the start of his tour to Africa, US Secretary of State Rex Tillerson, who arrived in Kenya on Friday evening, questioned the economic engagement in Africa by the Asian country.
Addressing the media in Addis Ababa on Thursday, Tillerson pointed out that although America was not trying to keep away Chinese investment in the continent, there's need for African nations to be careful while making loan deals with Beijing.
“It is important that African countries carefully consider the terms of those agreements and not forfeit their sovereignty,” he was quoted as saying by Reuters.
In December 2017, China overtook the World Bank Group as Kenya's top creditor. Kenya currently owes World Bank $5.18 billion (Sh524.83 billion), while China's stand at $5.202 billion (Sh526.95 billion).
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The message should start with the US itself who go to China for loans. Without those loans the US economy would collapse overnight. The days when such a message reverberated across African continent are gone.
Yes ur neighbors drive a Mercedes so must u yes debt is good as long as u see something shiny to remind u why u will fail. U can't afford but u blame the dealer for denying u ur Mercedes so u go to roadside dealer who does not care with horrible terms
Kenya must borrow for development. US has borrowed trillions of dollars and the economy if now at full employment. As long as borrowed money is capable of adding value to the country, then it is perfectly okay to borrow. For those who studied finance, you remember the optimal capital structure.
@Mugikuyu, @Sokora:
" Kenya has to borrow for development. US has borrowed trillions of dollars and the economy if (sic) now at full employment."
"Without those loans the US economy would collapse overnight."
Kenya has followed the US Nyayo by borrowing from China and the World bank. Is Kenya's economy NOW at full employment?
@Imara: Your reasoning is devoid of reality. US economy is driven by debt. Without debt who would own a home in the US of A? When you mortgage a home you gain through appreciation. You cannot reduce unemployment overnight. How many years did it take to achieve full employment after the last US recession? Youth in kenya will improve their employment status as the economy grows. You grow economies through increased savings and borrowings.
@Imara, do you really think Tillerson has come to save Africans from China? In any case China owns America right now with a debt to their eyeballs. You need to see this for what it is, JEALOUSY, period. Comparing Kenya to US economies does not make sense cos we are a growing economy and we need to pump in capital at this point. Having said that we need to curtail corruption and making sure we are not investing in areas where we don't get returns.
If u studied about mordern slavery then u would know. Does the usa borrow more than 20% of their annual GDP. If not they ur argument is mute. And borrowing only makes sense if invested in things that bring returns and uplifts the people
It's time for Kenya to borrow from its citizens and not from outsiders. Sell government bonds to Kenyans first. That is only possible if you stop the misuse of our resources by politicians.
Hehehehe this wazungus r very mad that we don’t borrow to them the way we use to???We have had this wazungus for 50 yrs,what did they do to us,only concentrating with Aid,Africa still have lots of poverty n diseases which they never helped??They didn’t build railway nor equip our hospitals,or even build roads n yet they r yapping that we should stay away from chinese???This USA owe chinese more than 4 trillion dollars n yet they r yapping we stay away from China.We get cheaper loans from China while world bank have bin milking African country’s with higher loans??Please USA keep off n watch African rising?As somebody said Wr borrowing for big development which in years to come will push our gdp up n create employments for our pple.So USA please keep off.No wonder this mzungu visited the country’s where China r investing heavily.
Mzungu is bothered with the Chinese being in Africa. They feel this is their place to exploit and they've been doing that since the 1884-5 Belin Conference also called scramble for Africa.
Let that sink and marinate kidogo. We are putting a stop of mzungu exploiting us by letting the Chinese do the exact same thing.
Kweli sisi waafirica ni wajinga.
Bongolala Kenyans are happy with the loans as long as it is wasted on payimg huge salaries to useless employees among them their tribesmen.They are also happy that the loan money is looted by their elite gods to build privately owned MALLS,High cost Schools,residential and commercial properties.How will the country recover such money?Don't be cheated if you never go home-JAMENI KENYA IS REVERSING
Hehehehe Diaspora pple u ran away from yr country coz there were no jobs,tarmaced roads,electricity’s,good roads,industries to work n when the government has made efforts of doing its best to avail those things then u guys r barking n complaining.Kwani u think the countries u live at n enjoy such things r build by yr farts!!Money was loaned n borrowed to have them.Kenya has changed for the better n complainers will always complain.U enjoy trains in wazungus country’s yet when kenya build railways for Kenyans u complain?Roads r done everywhere in the country n yet u complain.Truly Wr shitholes blacks Kwani mnafikiria mtanjengewa free this things.There is nothing for free.Everything ur enjoying in any country u pay for it from yr dammm hiked taxes to repay the loans.So Guys let’s grow up n think twice.As I said as long as money is used for development yes we need to borrow more.
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"...In December 2017, China overtook the World Bank Group as Kenya's top creditor. Kenya currently owes World Bank $5.18 billion (Sh524.83 billion), while China's stand at $5.202 billion (Sh526.95 billion)."
Unbelievable!