Kenya Swaps $3.5B Chinese Loans to Yuan

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Kenya has converted $3.5 billion of outstanding Chinese railway loans from U.S. dollars to yuan, cutting annual debt-servicing costs by $215 million. Treasury Secretary John Mbadi said the move diversifies currency exposure and could halve the loans’ interest rates. Analysts note the shift may set a precedent for other African countries seeking cheaper financing. The conversion aligns with China’s broader goal of expanding yuan internationalisation while reducing Kenya’s reliance on dollar-denominated debt.