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).