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Originally published by Kenyanstop
October 7, 2025
2h ago
Kenya Dumps US Dollar for Chinese Yuan in Move to Cut Costs
Treasury said the decision to switch the currency of the loan to the yuan will help reduce debt pressure...
✨ Key Highlights
Kenya has officially switched from repaying its Standard Gauge Railway (SGR) loan to China in US Dollars to the Chinese Yuan, a move aimed at reducing costs and strengthening the local currency. This conversion of the Ksh646.15 billion (USD5 billion) loan is expected to save the country significant funds annually.
- The conversion from Dollars to Yuan is projected to save Kenya approximately Ksh27.78 billion (USD215 million) annually in interest payments.
- The decision was finalized by the Treasury on Tuesday, according to CS John Mbadi.
- This strategic shift is also anticipated to reduce demand for the US Dollar in the market, potentially strengthening the Kenyan Shilling and improving Kenya's foreign exchange position.
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