Kenya and China have reached a groundbreaking agreement to restructure $3.5 billion in railway loans, converting them from U.S. dollars into Chinese yuan. The move could save Kenya $215 million in debt servicing costs and marks the first time an African nation has shifted major sovereign debt into RMB — a potential model for other Global South countries.
In this episode, Eric & Géraud unpack what this deal really means for Kenya, China, and the broader narrative around China’s “debt-trap diplomacy.” They explore how the agreement challenges old assumptions, what it says about the future of RMB internationalization, and whether other countries — like Indonesia — could follow suit.
