Kenya is in discussions with the Chinese government to reduce its Standard Gauge Railway (SGR) loan repayment burden. The Treasury is exploring converting the dollar-denominated loan into Chinese yuan to leverage lower interest rates.

• The original SGR agreement with China was for USD 5 billion (Ksh 646.2 billion).
• John Mbadi, aide to the Finance Minister, confirmed talks to Reuters.
• Converting the loan to yuan could reduce dollar demand, stabilize the Kenyan shilling, and strengthen Kenya’s foreign exchange position.