Kenya and Zambia Increase Use of Chinese Yuan

Kenya and Zambia are increasingly utilizing China’s yuan (renminbi) for official transactions, trade, and debt servicing. This shift reflects a broader trend among African economies seeking to reduce reliance on the US dollar and strengthen financial ties with Beijing.

Growing Yuan Adoption in Africa

Several African nations are exploring the use of the yuan. Ethiopia, for example, is considering debt-to-yuan arrangements, potentially expanding this trend across the continent. Experts suggest that yuan-denominated transactions can lower debt-servicing costs and ease foreign exchange pressures. However, they also caution that increased yuan usage could deepen dependence on China and expose countries to risks associated with the currency’s limited convertibility and Beijing’s policy control.

Kenya’s Yuan Restructuring

In October of last year, Kenya converted a portion of its Chinese debt into yuan. This restructuring of a $5 billion railway loan is projected to save the country approximately $250 million annually. The move was part of efforts to alleviate strain on Kenya’s public finances.

Zambia Accepts Yuan for Payments

Zambia became the first African country to officially accept yuan payments for mining taxes and royalties, also in October. Mining firms began settling some obligations in yuan, a significant development for the nation’s copper sector. This coincided with a period of currency strength for the Zambian kwacha, which was among Africa’s best-performing currencies in 2025.

Chinese mining companies, major players in Zambia’s copper industry, are now settling portions of their tax obligations in yuan. The Bank of Zambia stated that this decision aligns with the country’s reserve management strategy and reflects China’s role as Zambia’s largest copper buyer and a significant creditor.

China’s Evolving Influence in Africa

For decades, China’s influence in Africa was primarily focused on infrastructure development, including roads, railways, ports, and power projects. This engagement is now evolving, with China shifting its focus towards currency and finance to expand the international use of the yuan and reduce global dependence on the US dollar.

Although the yuan represents a small percentage of global foreign exchange reserves, Africa is increasingly serving as a testing ground for Beijing’s currency ambitions. Trade with China, the world’s largest exporter, has driven wider use of the yuan in trade finance, with its global market share increasing from approximately two percent to nearly seven percent over the past five years, according to data from the People’s Bank of China.

Bunmi Bailey is Assistant Editor, Finance (Africa), at BusinessDay. She holds a degree in Economics from the University of Lagos and has over eight years of experience in content writing and journalism.