Borrowing China with nearly 5 billion dollars to build railway, the African nation saw no profit, only saw a loss.
The troubles that this African country has encountered after borrowing nearly 5 billion dollars from China to build the railway is almost "useless" is causing many other poor countries to worry about the "easy money" of Beijing, South China Morning Post reported.
Kenya - the African nation - borrowed $ 4.7 billion from China's Belt and Road Initiative to build railroads.
The 580 kilometer long railway, completed by Kenya in 2017, is making this country "flooded" in debt.
China Traffic Construction Corporation is the unit that helps Kenya to build this costly project.
According to economic experts, projects implemented by African countries with loans from China are often ambitious but also potentially many risks leading to default.
The poor and especially worse profitability of the nearly $ 5 billion railway in Covid-19 is causing Kenyan officials to "crisis" when payment is due.
Kenya has appealed for Beijing to renegotiate debts but has not received a response.
Kenya must consider cutting the $ 10 million per month worth of administrative costs for the 580 kilometer railway because it is "nearly unprofitable".
The Kenyan government hopes Beijing will extend its repayment term as the country is struggling with its meager tax base due to the effects of the Covid-19 epidemic.
