Kenya has borrowed Sh829 billion from China, says Treasury PS

Kamau Thugge

The Chinese Government has given Kenya loans and grants worth over Sh829 billion since 2008 for various projects, the Senate heard Wednesday.

National Treasury Principal Secretary Kamau Thugge said Sh509.576 billion was given to the last government, with projects worth over Sh40 billion already completed while others worth over Sh469 billion are ongoing.

He also revealed that funds for infrastructure under recently signed agreements amounts to Sh319.2 billion.
Thugge said two new projects under the Jubilee government include the Standard Gauge Railway (SGR) project costing Sh309.9 billion and Nairobi City Centre E.H.V Network and 66kv Network at Sh9.3 billion.
“Sh4.7billion constitutes Interest Free loans and grants,” he said.

Senator Boni Khalwale (Kakamega) sought a statement from the Senate Finance Committee on how much money the Government has borrowed from China and the development projects funded.

Committee chairman Billow Kerrow (Mandera) informed the House that Chinese Government gave Kenya Sh509.576 billion in the last government while the Jubilee government has borrowed 319.2 billion so far.

Khalwale expressed concern that most funds had gone to Central and Rift Valley regions, while the rest of the country stands disadvantaged. He cited Moi Teaching and Referral Hospital in Uasin Ngishu and Nyeri General Hospital as having received cash as opposed to other needy regions.

However, Khalwale’s utterance angered Senator Mutahi Kagwe (Nyeri) who differed and accused him of making statements that portray him as discriminating against Central Kenya.

“The senator is obsessed with Central Kenya. I have not seen these funds in Nyeri Hospital yet I know the facility is in dire need,” said Kagwe.

Khalwale immediately asked the Nyeri Senator to apologise but he declined. Senator Majority whip Beatrice Elachi was also irked by Khalwale’s assertions and urged him to focus on projects that the Government intends to have in the coming years.

“If we continue naming projects and where they are situated and yet we know some of them are national especially the SGR, we would be putting the country on the wrong footing,” she said. Senator Anyang’ Nyong’o asked the Government not to focus on urban areas and instead prioritise projects at the grassroots.