Kenya at High Risk of Losing Key Assets to China over Debt, Global Ratings Firm Moody's Warns
Moody’s Investor Service has warned that Kenya could lose some of its key assets to China over piling debt.
In its newly-unveiled report, Moody’s, a global credit rating firm with headquarters in the US, says Kenya is among countries that are at high risk of losing key assets.
Moody’s notes that most of the loan agreements China has made with a majority of African countries lack transparency, thus putting them at risk of losing natural resources and strategic assets should they fail to settle the debt.
Moody's particularly mentions the Sh327 billion Standard Gauge Railway (SGR) project and the port upgrade projects as some of the assets China could seize should Kenya default on the loans.
“Countries rich in natural resources, like Angola, Zambia, and Republic of the Congo, or with strategically important infrastructure, like ports or railways such as Kenya, are most vulnerable to the risk of losing control over important assets in negotiations with Chinese creditors,” the Moody's report reads in part.
“Even if debt restructuring alleviates immediate liquidity pressure, the loss of natural resources revenue or other assets is credit negative,” Moody’s adds.
As of March this year, Kenya’s external debt stood at Sh2.51 trillion, Sh832.22 billion being multinational debt, Sh799.19 billion (commercial debt), Sh741.04 billion (bilateral debt) and Sh140.04 billion guaranteed debt.
Kenya owes China Sh534.07 billion and the debt could increase by the time phase two of the SGR is completed.
Citing growing debt, Moody's early this year downgraded the Kenyan government's rating from B1 to B2.
Comments
Some of us would hope the…
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Some of us would hope the FEROCIOUS Lender and the INSATIABLE Receiver will LISTEN. Nope! And it's because of GREED.
https://www.the-star.co.ke…
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In reply to Some of us would hope the… by Guest1 (not verified)
https://www.the-star.co.ke/news/2018/11/28/okech-kendo-our-billions-was…
And he is still signing up…
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And he is still signing up Kenya for loans. That boy in statehouse is clueless.
Zero achievement in six years. No laptops, No stadium, no high speed rail, no healthcare. The only projects showing some progress are the ones started by Kibaki though even these have inflated costs now.
Bure Kabisa
China know most of money…
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China know most of money they give African countries end up in few individuals pocket. Why don't they go for them and their businesses. Last time I wrote a list of them but Mwakilishi refused to post them.
China should know it is…
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In reply to China know most of money… by Kenya (not verified)
China should know it is giving personal loan to few individuals not the country.
Kenya is in deep doo-doo…
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Kenya is in deep doo-doo right now. Taxation is not bringing enough money and now the government is coming up with very cunning ways to make money. It is just a matter of time before things fall apart. The Chinese have played a big part in inflating the costs of these projects and could care less about Kenya or Africa in general. To think that a politician can sell us off to foreign masters speaks volumes about the kind of leaders we elect.
bullshett bullcrap americans…
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bullshett bullcrap americans company's researchers still yapping n getting angry about the chinese presence n dominant in kenya/Africa.Please wait n see if we will loose n if we do titanjipanga???Please this usa stuff should concentrate with Aid Aid which they do well.Can the same company tells us how much usa owes china or they should shallap
Someone said it loud enough…
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Someone said it loud enough. Open up your eyes and see what will happen in the very near future. China will own Kenya shortly. They are outplaying us in this game. All these handshakes will prove to be very costly to the taxpayers. Open your eyes.
@Godhavemercy Most of the…
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@Godhavemercy Most of the usa cities r not owned by usa example newyork is owned by jews n ur not yapping on this.Australia is controlled by chinese from the big farms to realestate n i can go on n on!So if kenya is taken over by chinese this will not b news but again we so much brainwashed as blacks by the west who have been with us for 55 yrs n did nothing to us.So this colonialist bullcrap west should just watch as the kenya/Africa develops by chinese help.Its that simple brainwashed diasporas
The greedy officials who…
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The greedy officials who made these deals should they themselves be on the line for repayment. Their activities need to be audited and the officials voted out.
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