A win-win economic partnership

Sino-Kenyan relations were established in 1978, and the first investment protection agreement was signed in 2001, followed by the establishment of a joint bilateral trade, investment, and economic and technological cooperation in 2011. By 2003, the interaction between China and Kenya had generated trade volumes exceeding US$186 million, with China establishing 96 investment projects worth over 4 billion Kenyan shillings. With the introduction of China’s Belt and Road initiative (BRI) in 2013, Chinese investments in Kenya have surged to over US$2.26 billion as of 2021. In 2018, bilateral trade volume reached US$5.4 billion, marking a 3.3% year-on-year increase. China’s exports to Kenya averaged US$5.4 billion annually from 2015 to 2018, peaking at US$5.9 billion in 2015. Kenya has also found a new market for its agricultural produce, including tea, coffee, and fresh avocados, with 30% of fresh avocado produce exported to the Chinese market as of January 2022.
China has significantly invested in Kenya’s infrastructure, with at least US$9.8 billion allocated between 2006 and 2007 for projects such as the Nairobi-Thika Highway and the Mombasa-Nairobi Standard Gauge Railway (SGR). These projects have enhanced mobility for Kenyan citizens and goods. By 2023, the Standard Gauge Railway had transported over 11.16 million passengers and 28.6 million tons of cargo, providing employment for over 2000 Kenyans. Notably, railway cars were manufactured locally, leading to the training and employment of over 250,000 Kenyans, along with contracts awarded to 300 local companies, contributing to a 1.5% boost in the country’s GDP. Other major projects under the Belt and Road Initiative include a 50-megawatt solar power farm in Garissa (US$13.6 billion), the Nairobi Expressway (US$688 million), the Nairobi Southern bypass (US$183.6 million), the Nairobi Western bypass (US$173 million), the Nairobi Inland Container Depot (US$212.3 million), and the Kenyatta University Teaching, Research, and Referral Hospital (US$99 million).