President William Ruto has struck seven deals worth billions as he continues his five-day official visit to China spanning across several areas of development in Kenya’s economy.
Through a statement, Ruto revealed the deals in areas such as tourism, manufacturing, and agriculture worth Ksh100.1 billion ($773M) as the country aims to continue its long-standing development relationship with the Asian nation.
The largest of the seven deals saw Ruto secure a partnership with Zonken Group worth Ksh51.8 billion ($400M). In the deal, the company will engage in large-scale aloe cultivation, processing, and an export base in Baringo with the promise of creating 500 jobs. It will also oversee a vineyard construction project for grape seedlings in Baringo. For both projects, it has acquired 372 acres of land.
The next mega deal is with manufacturing company China Wu Yi, worth Ksh19.4 billion ($150M), with the main agenda being planned investment in a Special Economic Zone for manufacturing, processing, and warehousing in Kikambala, Kilifi County, with the potential to create 5,000 jobs. For this, it has acquired 191 acres of land, with feasibility studies already completed.
Historically, the firm has been involved in the Thika Superhighway development, Jomo Kenyatta International Airport modernisation, and the Athi River Precast factory.
Another deal is with Rongtai Steel Company, worth Ksh12.9 billion ($100M), with the goal of expanding the steel manufacturing plant in Lukenya. The project will also encompass additional production lines and the establishment of a Research and Development center in Lukenya, with a view to creating 3,000 jobs.
Land on the existing premises for the planned expansion has already been secured, with the company previously investing Ksh5.1 billion ($40M) for a steel facility in Mavoko, Machakos, which has created 700 jobs.
Also, the country secured a Ksh6.4 billion ($50M) deal for the planned development of the Kenya Smart Transportation Industry Park, which will encompass a smart traffic components hub in Mombasa. Additionally, 50 acres have already been identified in Murang’a for the project, with 5,000 jobs targeted.
A deal worth Ksh3.8 billion ($30M) in the agricultural space was also struck. The planned investment will entail a hen-laying farm with a stock of 500,000 hens, a breeding chicken farm with a stock of over 10,000 breeding birds, and a feed factory with the potential to create 500 jobs.
Another deal worth Ksh2.9 billion ($23M) in the tourism sector was struck with the Hunan Conference Exhibition Group. In the deal, the company is eyeing hotel acquisitions and leases in Nairobi.
The final deal is worth Ksh2.5 billion ($20M) for a planned godowns project to set up manufacturing factories for textiles, garments, and solar power in Murang’a and Athi River, with a view to unlocking jobs for 7,000 people. The project will progressively see Ksh38.8 billion ($300M) invested over ten years.
To that effect, the government has acquired 14.3 acres in Kajiado and 100,000 square meters for the godowns along Mombasa Road in Machakos.
Ruto jetted into Beijing, China on Tuesday, April 22, where he was set for a series of high-level engagements aimed at boosting relations with one of the world's leading economic powerhouses.
The visit is meant to build on the Comprehensive Strategic Partnership, which Kenya and China established in 2017. Since that time, China has emerged as one of Kenya's most important partners.
While in Beijing, President Ruto is expected to hold bilateral talks with President Xi Jinping, with discussions expected to centre around economic transformation, sustained development and other shared priorities.
