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...
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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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Kenya Switches to Yuan for China Loan, Engages with COMESA, Russia, and Ukraine - October 2025
Kenya has officially switched from repaying its Ksh646.15 billion (USD5 billion) Standard Gauge Railway (SGR) loan to China in US Dollars to the Chinese Yuan, a move aimed at reducing costs. On the regional front, Kenya is hosting the 24th COMESA Summit, where President William Ruto is assuming the chairmanship to secure trade benefits. In diplomatic talks with Russia, Kenya is formalizing a migration framework to protect its nationals from irregular conscriptions into the Russian military. The government is also pleading with Ukraine for assistance in repatriating Kenyan citizens captured while fighting for Russia.
