A report from the United States government has raised concerns about China's utilization of its economic influence in African countries, particularly Kenya, to advance its global dominance ambitions. In the 2023 report submitted to the US Congress, the US-China Economic and Review Commission contends that many African nations, including Kenya, succumb to China's demands due to challenges in servicing debt.
The report highlights instances where China pressured Kenya into complying with its requests, such as the deportation of 45 Taiwan nationals implicated in a telecom scam involving Chinese nationals.
"In one high-profile case, Kenya, one of the highest recipients of BRI (Belt and Road Initiative) investment in Africa, agreed to extradite to mainland China 45 Taiwan citizens implicated in a telecom equipment scam that targeted Chinese nationals, despite protests from Taiwan."
Following this deportation, Kenya reportedly secured a substantial Ksh768 billion loan from China, earmarked for the construction of a railway connecting the Mombasa port to Naivasha.
"Kenya continues to deepen its economic relations with China. The year following the deportations, Kenya opened a major railway from the port of Mombasa to the city of Naivasha, financed by a Ksh768 billion ($5 billion) loan from a Chinese bank, and as of 2022, China serves as Kenya’s largest external creditor, at 22 per cent of its external debt," stated the report.
The report also revealed that amid Kenya's increasing reliance on Chinese financing, the Kenyan Cabinet endorsed a formal extradition treaty with China in 2023, aiming to encompass Taiwan citizens if ratified by the National Assembly. This move is seen as an effort to expand the One-China policy, a principle maintained by the Chinese Communist Party (CCP) recognizing Taiwan as part of China.
The Biden-led administration accused China of leveraging initiatives like the Belt and Road Initiative (BRI) to advance its policy. Launched in 2013, the BRI project aims to enhance China's global connectivity by transforming infrastructure in Africa and beyond. Over 155 countries have joined the project, representing more than 75 per cent of the world's population.
The report also noted that China resisted international appeals to address the debt challenges arising from the Belt and Road Initiative, with nearly 60 per cent of China's loan holders in financial distress in 2022, a significant increase from 5 per cent in 2010. Beijing appears determined to leverage these challenges and global events to expand the influence of the Chinese currency.