Kenya's treasury is examining the option of suspending tax waivers on the interest income earned by global financiers, including those from China, on funding mega infrastructure projects.
The move is part of the revenue-raising measures stated in the Finance Act 2023, Business Daily newspaper reported.
The proposal, if implemented, will impact the repayment of foreign loans used to finance several foreign-funded mega infrastructure projects, including the Standard Gauge Railway (SGR), Business Daily newspaper reported.
Beijing is the largest bilateral lender to Kenya.
Nairobi is expected to pay $1.62 billion (236.8 billion Kenyan shillings) in interest by the end of 2036 to the China Exim Bank for three loans taken for the SGR project.
(Writing by P Deol; Editing by Anoop Menon)
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