Kenya’s State-Run Companies Buckling Under Too Much Debt

Three of Kenya’s largest state-backed enterprises are showing signs of significant distress amid mounting debts, declining revenues, and a weakening currency. Chinese loans play a critical role in two of the firms, Kenya Railways Corporation and Kenya Power, while the third, Kenya Airways, does not appear to have as much exposure to Chinese debt.

  • Get a daily email packed with the latest China-Africa news and analysis.
  • Read exclusive insights on the key trends shaping China-Africa relations.
  • Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

OR

Already a subscriber? Log in Click Here to Learn More
by Eric Olander

Most Read

1
Developing Countries’ Debt Servicing Costs to China Are Significant, but Nowhere Near as Much as Other Creditors
2 Chinese Military Fans Discuss Why Indonesia Bought Rafale Instead of J-10C
3
Chinese Cargo Planes Secretly Ferrying Supplies to Iran, Claim Online Sleuths
4
Indonesia Goes Nuclear, Taps China and Russia for Modular Reactors
5 Trump’s Contradictory Iran Strategy Leaves U.S. Weaker After War’s End, Says Chinese Commentator
6
Thailand in Last-Minute U.S. Talks as 36% Tariff Looms

You Might Like

Background: What Does Kenya Owe? And to Whom?

While there’s widespread concern in Kenya about the country falling prey to a Chinese “debt trap,” the reality is that Kenyans should be far more concerned about the consequences of failing to repay ...

Kenya’s Debt Payments to China Shoot Up as Grace Periods End

Kenya’s debt repayments to China will jump by 135% as grace periods for the repayment of large infrastructure loans come to an end. Kenya will pay $630.7 million to Chinese lenders this financial year, ...

Kenya’s Foreign Exchange Reserves Fall Due to Repayment of Railway Loans to China

The Kenyan government cut a check for $226 million last week to service its debts to the China Exim Bank for the loans used to build the Standard Gauge Railway. The Kenyan Central ...

China’s Lending Will Be Demand-Driven: Ambassador

China will not promote loan-supported projects to the Global South but will be led by recipient country demand. This was one of the takeaways from a recent interview with China’s ambassador to Kenya, Zhou Pingjian. ...

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.

More about CGSP