Kenya has not defaulted on Chinese SGR loan – Ukur Yatani – The Star Kenya
• A media report had stated that Kenya has defaulted on its external debt service obligations to China on account of SGR loans.
• Yatani said that Kenya has at no time been flagged as country defaulting on its external debt obligations.
reasury cabinet secretary Ukur Yatani has dismissed claims that Kenya was fined Sh1.3 billion for allegedly defaulting on Standard Gauge Railway loan to China.
Yatani said that Kenya has at no time been flagged as a country defaulting on its external debt obligations.
“Kenya has not accumulated any debt arrears to suggest difficulties in debt servicing,” Yatani said.
He said all public debt, including the SGR loans, are paid for from the consolidated fund in accordance with the public finance management Act, 2012.
“Debt service is a first charge on the Consolidated Fund and takes precedence over other forms of expenditure,” he added.
A media report had stated that the country defaulted on its external debt obligations to China on account of SGR loans.
But in a statement on Thursday, Yatani said that Kenya’s financial position is sound and robust.
“We wish to state categorically that Kenya has never defaulted on its settlement of its debt service obligations to any pf its creditors, nor has any creditor filed or reported any claim of default on debt service payments on facilities extended to the government of Kenya.”
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