Kenya is negotiating with Beijing to redenominate a roughly $5 billion loan used to build its standard-gauge railway from US dollars into Chinese yuan, according to an aide to Finance Minister John Mbadi. China is Kenya’s largest bilateral creditor, accounting for about $5 billion of the East African nation’s $40 billion external debt. Analysts say a switch to yuan could lower interest costs, easing the nearly $1 billion Kenya pays China each year in debt service and reducing the country’s exposure to dollar fluctuations. The currency conversion talks form part of a broader effort by Nairobi to manage what the International Monetary Fund classifies as a high risk of debt distress. Treasury officials also plan to refinance several eurobonds coming due over the next nine years to smooth the government’s repayment schedule. Kenya is seeking alternative measures to create fiscal space after last year’s attempt to raise taxes sparked widespread protests.