China-Kenya diplomatic relations at 59 years
December 14 marked the 59th anniversary of the establishment of diplomatic relations between China and Kenya. In recent years, the long-standing friendship between the two countries has developed steadily under the Comprehensive Strategic Cooperative Partnership (CSCP).
China and Kenya signed a trade agreement in 1978, the year China adopted the reform and opening-up strategy. Over the past 40 years, trade and economic cooperation between the two countries has reached unprecedented levels.
In the last two decades, Africa, particularly sub-Saharan Africa, has recorded increased economic growth. This has been as a result of a few key factors. One is the changing political landscape in the continent, as the older generation of post-colonial leaders gradually gives way to a new breed of vibrant, visionary and ambitious leaders.
Second is the exponential growth of infrastructure, and proliferation of information and communication technologies. Thirdly, Africa’s young and educated population is now demanding a better life for themselves and progeny. Many have travelled to different parts of the world mainly for education purposes, and are eager to better their lives to international standards.
China is currently helping African countries to grow their economies through value addition of agricultural products for export. For instance, Kenya has signed a couple of memoranda with the Chinese Government to give preferential access of Kenya’s food and agricultural products in the vast Chinese market during the first China International Import Expo which debuted in Shanghai in November, 2018.
Since 2015, bilateral trade between China and Kenya has been on the rise. China has eased out Kenya’s erstwhile major trading partners and is now the leader. From 2015 to 2019, the total trade value between the two countries was USD 18.20 billion.
The strong and fruitful economic and trade partnership between China and Kenya is vividly demonstrated by over 100 major projects developed with joint efforts from both countries in the last 56 years. Some of the most outstanding projects financed by the Chinese government over this period include the Moi International Stadium in Nairobi, the Thika Superhighway, the iconic Standard Gauge Railway (SGR), and the Nairobi Expressway marvel.
In 2021 SGR netted a total of Kshs 15.2 billion in revenue from passenger and freight services. An Economic Survey conducted by the Kenya National Bureau of Statistics (KNBS) indicated that in 2021, SGR reported a 24 percent increase in revenue which jumped to Kshs 13 billion from Kshs 10.5 billion in 2020.
KNBS attributed the rise in revenue recorded by the SGR to increased cargo demand which saw the new line introduced in 2017 haul 5,407 tonnes of cargo last year from 4,411 thousand tonnes in 2020, a 22.6 percent increase. As one of the early success stories under the BRI framework, SGR is a clear demonstration of the value generated by China-Africa industrial cooperation.
Responding to the call of the BRI, an increasing number of Chinese enterprises have established a reasonable presence in Kenya, bringing along their advanced experience, technology and equipment, and working closely with local partners to attain win-win outcomes.
As BRI continues to progress, it is going to bring more tangible benefits to the people of both countries. As the BRI continues to gain momentum, an increasing number of Chinese businesses are eyeing the Kenyan market. More extensive cooperation is expected in a wide range of areas, including trade (especially Kenya’s agricultural exports to China), infrastructure, delivery of smart city projects, and development of human capital.
Major projects financed or supported by the Chinese Government include completion of the Lake Turkana Wind Plant, which was hailed by the Kenya Governmentas “Engineering Magic in Kenya’s History”, laying of high speed internet connectivity by Huawei, promoting industrial upgrading, job creation for Kenyans, and contributing to sustainable community livelihoods.
For years, China has been one of Kenya’s top trading partners, and a source of foreign direct investment. Currently, there are more than 400 Chinese businesses operating in Kenya, creating nearly 130,000 jobs for local people. These companies have played an important role in accelerating advancement of the Big Four Agenda, which is currently Kenya’s development blueprint under President Uhuru Kenyatta.
The deepening of the CSCP between China and Kenya is an important part of China-Africa cooperation. China is willing to step up cooperation with Kenya in areas such as agriculture, infrastructure, healthcare, and the secondary sector.
With mutual understanding and support on many international and regional issues, the two countries continue to expand and deepen their economic and trade cooperation. Such cooperation has yielded concrete results.
Vigorous exchange programs initiated by the two countries in various areas have set great examples of both Sino-African and South-South cooperation. The cooperation between China and Kenya has shown signs of broad, promising prospects.
Interactions between China and Kenya are also growing, both in number and magnitude. In 2018, about 170 Kenyans were awarded China-sponsored scholarships to study in the Far East country. Further, over 600 citizens from all walks of life were also trained in China.
China will continue to boost cultural exchanges and cooperation at local levels. Cooperation with China is a major opportunity for Kenya and Africa to achieve industrialization and modernization. It brings tangible benefits to Kenyan and the African people.