China Eximbank provides $69.8 million preferential buyer’s credit for Phase 2 of equipment purchases by Kenya's National Youth Service (Linked to Project ID#1278)

On March 25, 2013, China Eximbank and the Government of Kenya signed a $69,838,197.73 preferential buyer’s credit (PBC) agreement for the procurement of equipment for Kenya's National Youth Service (NYS). The loan carried the following borrowing terms: a 2% interest rate, 8 year grace period, and 21 year maturity (final maturity date: March 21, 2034). The borrower made no principal repayments between July 1, 2020 and June 30, 2021 (Fiscal Year 2020-2021) and principal repayments worth $5,340,686.15 between July 1, 2021 and June 30, 2022 (Fiscal Year 2021-2022). The loan’s amount outstanding was $69,838,197.86 as of June 30, 2020, $69,838,197.86 as of June 30, 2021, and $64,466,028.81 as of June 30, 2022. The project was implemented by AVIC International. Through this project, AVIC International was responsible for supply road construction equipment, cranes, motor vehicles, and spare parts to NYS. NYS ultimately managed to import about 300 sets of equipment from China. The equipment was supposed to be distributed to 47 Kenyan counties and AVIC International was responsible for building training and maintenance centers all around the country. The second phase of the project also has a clear focus on training students to operate the imported machinery and repair them. For example, through this project, the Kenyan government bought about 380 heavy vehicles from Chinese machinery supplier during the second phase of the program. AVIC International then employed a team of 12 machinery experts in Nairobi to train low-income students for three months. The team also worked with other experts sent from Chinese manufacturers such as Sany, Zoomlion, and China National Heavy Duty Truck Group, to provide students with more in-depth knowledge about machinery. The Kenyan government, in turn, sent a group of 15 to 20 youths to China every year to learn how to operate different kinds of machinery from the aforementioned Chinese manufacturers. Students selected by the Kenyan government were between the ages of 14 and 20. The project was completed on April 28, 2017.

Additional details

1. This China Eximbank loan is not included in the database of Chinese loan commitments that SAIS-CARI released in July 2020. Nor is it included in the China’s Overseas Development Finance Dataset that Boston University's Global Development Policy Center published in December 2020. 2. The Chinese project title is 中航国际肯尼亚青年服务队项目. 3. The identification number for this China Eximbank loan in the Kenyan National Treasury’s public debt register is 2013003 (2013003_1). 4. The amounts outstanding and repayments data are drawn from the Kenyan Treasury’s External Public Debt Register. See https://www.dropbox.com/s/549ixt2gj1jbjvi/External-Public-Debt-Register-as-at-End-June-2022.pdf?dl=0 and https://www.dropbox.com/s/0et4jg1qfg1bo7r/External-Public-Debt-Register-as-at-End-June-2021.pdf?dl=0 and https://www.dropbox.com/s/233j706743q7f1g/External-Public-Debt-Register-as-at-End-June-2020.pdf?dl=0 and https://www.dropbox.com/s/qkoybr9ja0ohemy/External-Public-Debt-Register-as-at-End-June-2009.pdf?dl=0 and https://www.dropbox.com/s/thy3s6ggjcjd97z/External-Public-Debt-Register-as-at-End-June-2012.pdf?dl=0 and https://www.dropbox.com/s/fzbfq01vas6m0i9/External-Public-Debt-Register-as-at-End-June-2019.pdf?dl=0 and https://www.dropbox.com/s/ennrl6d4zd2nizs/External-Public-Debt-Register-as-at-End-June-2018.pdf?dl=0 and https://www.dropbox.com/s/8ibazrj1a8oho2d/External-Public-Debt-Register-as-at-End-June-2017.pdf?dl=0 and https://www.dropbox.com/s/wdbjl0wq49i09x1/External-Public-Debt-Register-as-at-End-June-2015.pdf?dl=0 5. This is the second phase of a project that was first initiated in 2008 through an RMB 390 million China Eximbank loan (captured via Project ID#1278).

Number of official sources

7

Number of total sources

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