Borrowing China with nearly 5 billion dollars to build railway, the African nation saw no profit, only saw a loss.<br />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.<br /><br />Kenya - the African nation - borrowed $ 4.7 billion from China's Belt and Road Initiative to build railroads.<br /><br />The 580 kilometer long railway, completed by Kenya in 2017, is making this country "flooded" in debt.<br /><br />China Traffic Construction Corporation is the unit that helps Kenya to build this costly project.<br /><br />According to economic experts, projects implemented by African countries with loans from China are often ambitious but also potentially many risks leading to default.<br /><br />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.<br /><br />Kenya has appealed for Beijing to renegotiate debts but has not received a response.<br /><br />Kenya must consider cutting the $ 10 million per month worth of administrative costs for the 580 kilometer railway because it is "nearly unprofitable".<br /><br />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.
