Xi Invites Ruto for Talks as China Seeks New Allies Amid Tariff Standoff With Trump

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A photo of President William Ruto (left) and Chinese President Xi Jinping during a past visit to Beijing, China on September 3, 2024.
PCS

President William Ruto is set to embark on a four-day trip to China from Tuesday, April 22, to Saturday, April 26, after an invitation by the Chinese President Xi Jinping.

Through a statement, the Chinese Embassy in Kenya revealed the new development, marking Ruto's second trip to the Asian nation in six months. Ruto's last visit to China was in September 2024.

“At the invitation of Chinese President Xi Jinping, Kenyan President William Samoei Ruto will pay a state visit to China from April 22 to 26,” the embassy stated.

Reports indicate that key amongst Ruto’s agenda in China is to seek new funding for projects, including extending the Beijing-supported Standard Gauge railway to the border with neighbouring Uganda.

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President William Ruto(smiling on right) when he met China Communist Party officials led by Li Xi(directly opposite) at State House in Nairobi on November 5, 2024.
PCS

In addition, Ruto’s visit will involve strengthening diplomatic ties with the world’s second biggest economy amidst its ongoing trade war with the United States, which is also a major ally of Kenya. 

The continued dispute on tariffs between the two global superpowers has put many developing and underdeveloped countries in a tricky situation as they seek to navigate the difficult diplomatic dynamics at play.

Even so, Ruto’s sojourn to China comes just a few months after his last trip to Beijing at the 9th Forum on China-Africa Cooperation (FOCAC) Summit, where he was able to secure billions of shillings for infrastructure projects, lucrative market expansion for Kenya’s agricultural produce and rubber-stamp strategic partnerships.

A key outcome of the visit was securing Ksh40 billion in concessional financing from China to complete 15 stalled infrastructure projects across ten Kenyan counties. These projects encompass roadworks, energy transmission, ICT connectivity, and water supply.

Notably, the extension of the Standard Gauge Railway from Naivasha to Malaba was prioritised, aiming to enhance regional integration and trade with neighbouring countries like Uganda, the Democratic Republic of Congo, and South Sudan.

During the summit, Kenya joined the Asian Infrastructure Investment Bank (AIIB), opening avenues for infrastructure financing. Further, the visit to China aimed at achieving a rethink of Kenya’s debt to China, with the National Treasury currently undertaking reforms to enhance public debt transparency and ensure borrowing is tied to measurable development outcomes.

To that effect, the Kenyan government sought to increase its use of the Chinese Renminbi (RMB) in financing arrangements as part of its broader loan diversification strategy. RMB-denominated loans, particularly through institutions like China Eximbank, offer concessional terms, longer repayment periods, and reduced exposure to US dollar fluctuations.

Treasury Cabinet Secretary John Mbadi has been key to this, recently leading a delegation to Beijing for high-level talks with Chinese officials to get more funding. Further, China is ranked as one of the biggest among the external creditors, with the country owing China just over one trillion shillings.

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President William Ruto in a meeting with Asian Infrastructure Investment Bank (AIIB) President and Board of Directors Chairman Jin Liqun, Beijing China, September 3, 2024.
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