US Govt Exposes How China is Blackmailing Kenya in Loan Funding


US Govt Exposes How China is Blackmailing Kenya in Loan Funding

According to a 2023 report presented to the US Congress by the US-China Economic and Review Commission, the United States government asserts that China is using its economic sway over African nations to advance its pursuit of worldwide dominance.

The report contends that a significant number of African countries, Kenya included, are succumbing to China’s requests primarily due to the difficulties they face in repaying their debts.

Kenya has reportedly been subjected to specific requests, which include the extradition of 45 Taiwanese individuals to answer charges related to a telecommunications scam allegedly involving Chinese nationals.

“In one high-profile case, Kenya, one of the highest recipients of BRI investment in Africa, agreed to extradite to mainland China 45 Taiwan citizens implicated in a telecom equipment scam that targeted Chinese nationals, despite protests from Taiwan.”


After the deportation, the United States observed that Kenya secured a loan of Ksh768 billion from China. This financial assistance was designated for the development of a railway connecting the Mombasa port to Naivasha.

“Kenya continues to deepen its economic relations with China. The year following the deportations, Kenya opened a major railway from the port of Mombasa to the city of Naivasha, financed by a Ksh768 billion ($5 billion) loan from a Chinese bank, and as of 2022, China serves as Kenya’s largest external creditor, at 22 per cent of its external debt,” read part of the report.

“Amid Kenya’s deepening reliance on Chinese financing, in 2023 Kenya’s Cabinet endorsed a formal extradition treaty with China that appears to encompass Taiwan citizens, as well, if ratified by the National Assembly.”

According to the report, the objective is to further the One-China policy, a principle upheld by the ruling Chinese Communist Party (CCP).

This policy asserts that there is a single sovereign state known as China, encompassing Taiwan as an integral part of the nation. The Biden-led administration has accused China of utilizing initiatives like the Belt and Road Initiative (BRI) as a means to advance and implement the One-China policy.

Initiated in 2013, the Belt and Road Initiative (BRI) project seeks to enhance China’s global connectivity by transforming the infrastructure in Africa.

Presently, more than 155 countries have joined the initiative, representing over 75 percent of the world’s population.

The United States contends that China has been unresponsive to appeals from various international countries regarding the continuous provision of loans to African nations.

“After a decade of predatory lending through the Belt and Road Initiative (BRI), nearly 60 per cent of China’s loan holders were in financial distress in 2022, up from just 5 per cent in 2010. Beijing has resisted global appeals to address these debt challenges, instead seeking to leverage these troubles and international events to expand the use and reach of the Chinese currency.”

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US Govt Exposes How China is Blackmailing Kenya in Loan Funding



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