The Treasury has revised its budget to include Sh35 billion pay to China’s Exim Bank for a loan it gave Kenya for construction of the Mombasa-Nairobi Standard Gauge Railway (SGR). The cash allocation is contained in the supplementary budget for the year ending June as taxpayers continue to subsidise the new passenger and cargo business. Transport Cabinet Secretary James Macharia said that the cash allocation will go towards paying the loan of Sh324.01 billion Kenya borrowed from the Exim Bank of China in 2014. Loan repayments to China will more than triple in the financial year starting July next year as the five-year grace period that Beijing extended to Kenya in May 2014 for SGR funds comes to an end. Nairobi will pay Chinese State-owned lenders nearly Sh82.85 billion in the year starting July, from Sh36.24 billion in the current year ending June made up of interest alone.
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