Kenya Cuts Debt Costs With Yuan Swap as China Ties Reshape Financing

File image of Kenya's Standard Gauge Railway that China financed and built as part of the Belt and Road Initiative. Simon Mania/AFP

Kenya reduced its external debt-servicing costs by about $167 million after using a yuan-for-dollar currency swap linked to its debt with China. This is the first time Nairobi has specified the exact figure, after announcing the swap in October.

The transaction lowered Nairobi’s exposure to the strong U.S. dollar and eased pressure on foreign-exchange reserves.

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by CGSP Staff

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