Nairobi specifically wants to reprofile the $5bn loan that Beijing underwrote for the construction of the east African country’s modern railway, the finance minister told Reuters Wednesday.
If approved, the move would reduce pressure on Kenya’s forex reserves.
The country spends nearly $1bn a year in debt service to China.
Since 2022, Kenya’s debt servicing costs have skyrocketed owing to higher interest rates and a strong dollar.
It is not known if Kenya has sought to convert any other dollar denominated loans.
There was no word from Beijing on the news.
Of Kenya’s $40.5 billion in external debt at the end of March, it owed $14.4 billion to the World Bank, $7.52 billion to eurobond investors and almost $5.04 billion to China, according to Treasury data.
The International Monetary Fund lists Nairobi as being at a high risk of debt distress.
The Standard Gauge Railway (SGR), part of a regional connectivity project runs from the port of Mombasa to Naivasha in central Kenya
According to him, the activities of smugglers and traders who bring in goods outside official channels create unfair competition for local manufacturers who comply with tax and regulatory obligations.
“Illegal imports undermine the competitiveness of local industries, discourage investment, and ultimately derail our drive towards industrialization,” he said.
Mr. Twum-Akwaboah emphasized that stricter enforcement of border controls is necessary to safeguard jobs, protect legitimate businesses, and boost government revenue.
He made the call during Prudential Bank’s special customer seminar on the appreciation of the cedi, where stakeholders in the business community discussed the challenges and opportunities in sustaining the local currency’s gains.
The AGI has consistently advocated stronger trade enforcement measures, arguing that protecting local industries from unfair trade practices is key to strengthening Ghana’s economy.