Kenya is seeking to position itself strategically to ensure it benefits from a Ksh6 trillion ($50 billion) kitty that China is planning to channel to African countries over the next 3 years.
On Wednesday, Chinese President Xi Jinping, speaking during the ongoing Forum on China-Africa Cooperation (FOCAC), announced a cooperation framework that seeks to strengthen Beijing's influence in Africa at a time Western countries are looking to make inroads.
President Xi stated that China is ready to deepen cooperation with African countries in industry, agriculture, infrastructure, trade and investments where the money is expected to be channeled.
Kenya had already secured a Ksh40 billion loan from China even before President Ruto travelled to attend the forum last weekend. The money, is set to be allocated towards reviving stalled projects at a time when the Kenya Kwanza administration has come under intense scrutiny.
While at the forum, President Ruto, one of the 49 leaders to attend the summit, struck a deal that will see the Asian giant open its expansive market for Kenya's agricultural produce. This means Kenyan farmers will be able to export avocados and tea to the expansive market.
Further, President Xi also hinted at refocusing attention on the Belt and Road Initiative which seeks to create a transport corridor to facilitate trade between China and other countries.
Kenya has already benefited in the form of securing loans to construct the Standard Gauge Railway (SGR), however, the country only secured financing for two phases with construction through to Kisumu yet to be completed over financing constraints.
“We should build an East African connectivity hub and industrial belt, and strengthen cooperation in areas such as the digital economy, new energy, trade, poverty reduction, and agricultural development,” President Xi stated during the forum.
China's Importance
Back home, President Ruto is facing budget constraints that have made it increasingly difficult for him to fund operations. This was exacerbated by his decision to withdraw the Finance Bill, 2024 following widespread anti-government protests.
The revenue squeeze has meant President Ruto has been unable to deliver on most of his pre-election promises.
Since being elected, President Ruto has adopted a pro-west stance. The recent warming up to China points to a possible reconsideration of diplomatic loyalties amid a pressing need to deliver.
President William Ruto's outreach to China seeks to balance international influences and diversify Kenya's economic partnerships. By engaging with both the West and China, Kenya can negotiate better terms and reduce dependency on a single bloc.
China’s focus on infrastructure aligns perfectly with Kenya's Vision 2030, presenting opportunities for significant advancements in the transportation, energy, and technology sectors.
