Kenya Denies Defaulting on Chinese Railway Loan Zawadi

Kenya’s government has denied media reports that it has failed to meet its ‘debt repayment obligations’ to China over the construction of a multi-billion dollar railway line from the capital Nairobi to the coastal city of Mombasa.

Business Daily reported that China had imposed a $10m (£8.9m) penalty after Kenya defaulted on repaying a $4.5bn loan for building the 472km (293 mile) line – Kenya’s biggest infrastructure project since independence.

In a BBC interview, Kenya’s Director General of Public Debt Management, Haron Sirima, dismissed the report as “ridiculous.”

The government has not run up any arrears, he added.

BBC /Shakirat Sadiq