Kenya denies defaulting on Chinese railway loan

Kenya's government has denied media reports that it has failed to meet its debt repayment obligations to China over the construction of a multi-billion dollar railway line from the capital Nairobi to the coastal city of Mombasa.

Business Daily reported that China had imposed a $10m (£8.9m) penalty after Kenya defaulted on repaying a $4.5bn loan for building the 472km (293 mile) line - Kenya's biggest infrastructure project since independence.

In a BBC interview, Kenya's Director General of Public Debt Management, Haron Sirima, dismissed the report as "ridiculous".

The government has not run up any arrears, he added.

This article originally appeared in BBC News

Photo: Michael Khateli