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FOCAC helps bolster China-Kenya agro-trade ties

FOCAC helps bolster China-Kenya agro-trade ties
President William Ruto with Chinese President Xi Jinping on September 3, 2024. PHOTO/@WilliamsRuto/X
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Kenya’s President William Ruto held a pivotal meeting with Chinese President Xi Jinping on Tuesday, ahead of the official launch of the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) in Beijing.

A key focus of their discussions was the expansion of Kenya’s agricultural exports to China, particularly avocados and tea.

During the meeting, Kenya’s agricultural sector received a significant boost, with China committing to increase its imports of these key products.

This commitment marks a major milestone for Kenyan exporters, who have been seeking to tap into China’s vast consumer base as a way to diversify their markets and reduce dependence on the European Union.

Kenya began exporting avocados to China in August 2022, initially under strict conditions that only allowed the export of frozen fruits.

These restrictions have since been eased, allowing for the export of fresh produce, which has opened up even greater opportunities for Kenyan farmers and exporters.

The broader picture of Kenya’s agricultural trade with China highlights a diverse array of products. Data from the United Nations COMTRADE indicates that, while ores, slag, and ash were Kenya’s top exports to China in 2023, valued at $110.89 million (Sh14.3 billion), agricultural products have also made significant inroads.

Edible fruits, nuts, citrus peel, and melons were exported at a value of $25.69 million, while fish and crustaceans reached $18 million (Sh2.3 billion). Coffee, tea, and spices accounted for $9.49 million (Sh1.22 billion) in exports, alongside various textile and leather goods.

This growing trade relationship between Kenya and China is not only enhancing economic ties but also opening new avenues for Kenyan farmers and businesses to thrive in a global market that increasingly values quality agricultural produce.

Kenya’s agricultural exports to China represent a significant milestone in the country’s economic growth and diversification.

As a nation blessed with fertile lands and a hardworking farming community, Kenya has long been a producer of high-quality agricultural goods.

The expansion of exports to China not only strengthens bilateral ties, but also opens new avenues for Kenyan farmers and businesses to thrive on the global stage.

One of the most encouraging aspects of this development is the diversification of Kenya’s export markets. Traditionally reliant on Europe and the United States, the shift towards China marks a strategic move that reduces dependency on a few markets, thus enhancing economic resilience.

With China’s large population and growing demand for high-quality food products, Kenya is poised to capitalise on this opportunity by exporting goods such as avocados, coffee, tea and flowers.
The economic benefits of this export growth are manifold.

Increased exports lead to higher foreign exchange earnings, which can be reinvested in infrastructure, education and healthcare.

Furthermore, it creates more jobs within the agricultural sector, from farm workers to those involved in logistics and export services.

The ripple effect of these jobs extends to rural communities, where improved incomes can elevate living standards and reduce poverty.

Moreover, exporting to a market as demanding as China compels Kenyan producers to adhere to stringent quality standards.

This drive for excellence not only boosts the reputation of Kenyan goods abroad but also improves the overall quality of products available domestically. As a result, both local consumers and international buyers benefit from this push towards higher standards.

This export expansion also serves as a powerful diplomatic tool. Strengthened trade relations with China can lead to more comprehensive cooperation in other areas such as technology transfer, infrastructure development and education.

This many-sided relationship promises a brighter future for Kenya on the global stage.
— The writer is a PhD student in International Relations

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