The move comes four days after the Solomon Islands cut ties, leaving Taiwan with fewer allies in the region, the BBC reported on Friday.
Beijing considers Taiwan to be a part of China and says it should unite with the Chinese mainland.
Only 15 countries now recognise the self-governing territory of Taiwan as a sovereign nation.
Taiwanese Foreign Minister Joseph Wu said Beijing had used "dollar diplomacy" to poach one of Taiwan's last remaining allies by providing funds to procure several aeroplanes and ferries.
China is trying to "suppress and reduce Taiwan's international presence" and "ultimately destroy Taiwan's sovereignty", Wu said.
Since Tsai Ing-wen was elected the Taiwanese president in 2016, Taiwan has lost seven diplomatic allies. She is seeking re-election in January.
China has proposed that Taiwan be governed under a "one country, two systems" structure similar to Hong Kong.
Wu said Kiribati's President had asked Taiwan to donate money to purchase commercial aeroplanes.
Taipei assessed its finances and declined, but offered to give preferential loans instead.
Those countries that have remained loyal to Taiwan are in Latin America and the Pacific, and the only European state to still do so is the Vatican.
Taiwan has been a de facto sovereign nation since the end of a civil war in 1949, but it has never formally declared independence from the mainland.
( With inputs from IANS )