A senior Kenyan government official has revealed that Chinese infrastructure projects in the country are viable and economical, citing past successes with foreign investments as signals that the trend can continue to boost the Kenyan economy
As reported by Xinhau, Ukur Yatani, Cabinet Secretary of the National Treasury and Planning, has revealed to the parliamentary committee on finance and national planning that major road and rail projects financed and undertaken by Chinese companies have eased transportation and boosted the nation's economy.
"The rate of completion of the projects has been fast and they also have a long-term effect on the economy which is very good," Yatani said. He elaborated that the interest rate for Chinese loans to Kenya is three percent annually; less than the typical commercial lending rates in the country; "There is a perception that we are getting loans from foreign governments at very high rates."
On the loans, Yatani added that borrowing money in such a way is standard practice for governments to fund projects that will begin quicker economic development than self-financing such projects, the source reported.
"We are therefore not seeking postponement or forgiveness of debt because we are not facing any difficulty in repaying the loans," he revealed, adding that Kenya's public debt is still below the international debt sustainability threshold.
