China will fund the completion of key infrastructure projects, mainly those that have stalled, President William Ruto disclosed yesterday on his visit to Beijing.
The extension of the Standard Gauge Railway to other parts of the East Africa region and the construction of the Rironi-Mau Summit-Eldoret-Malaba dual carriageway projects are Kenya’s top priorities in the engagement with China.
The expansion of the SGR from Naivasha to Uganda, Rwanda, DR Congo and Congo Brazzaville will connect the Indian and the Atlantic oceans.
“The Rironi-Mau Summit-Malaba highway is crucial in easing [movement] of goods and passengers to western Kenya and eventually to the [rest of the] region,” Ruto said after a meeting with his host Xi Jingpin at the Great Hall of the People in Beijing.
Irrigation venture
The highway was initially supposed to be funded by the French government under a public-private partnership but was later discontinued.
Other projects to be funded include the Galana-Kulalu irrigation venture and the Bomas International Conference Centre.
The President thanked the Chinese government for ongoing projects, including the Integrated Transport System in Nairobi, equipping technical and vocational education and training colleges, the Bosto Dam and the dualling of the Northern Bypass in Nairobi.
On projects in the pipeline, President Ruto said: “I seek China’s concurrence in urging our teams to conclude the necessary procedures by the end of the year.”
Ruto commended China for the Belt and Road Initiative, saying it had helped Kenya develop its transport infrastructure, including the SGR, Kipevu Oil Terminal and Nairobi Expressway.
“Kenya remains committed to actualising the promise of the Belt and Road Initiative in enhancing national, regional and continental connectivity,” he said.
The President noted that other significant benefits of China’s support include in sectors such as education, renewable energy, research and ICT.
The President also commended China for a Sh34 billion loan to fund the construction of rural roads, which serve 70 percent of the country’s population.
Concensional financing
He said Kenya is keen to develop LAPSSET corridor projects, including the Lamu-Garissa-Isiolo road, which will draw investments to the northern and north-eastern regions of Kenya and neighbouring countries. “Kenya is eager to access resources from the Chinese financial market, and especially the Panda Bond.”
Kenya, he added, has joined the Asian Infrastructure Investment Bank, giving the country an opportunity to access concessional financing for infrastructure and climate change efforts. “The membership of the Asian Infrastructure Investment Bank will unlock much-needed capital for development in our country,” he said.
He appealed to China to encourage its private sector to take advantage of the opportunity to participate in the issuing of the Panda Bond.
The President commended China’s consistent leadership in promoting South-South cooperation, saying it holds the key to unlocking Africa’s potential to harness mineral and non-mineral resources, renewable energy and the demographic dividend.
For his part, President Xi said the partnership between Kenya and China has led to several flagship connectivity projects that have significantly boosted economic and social development in Kenya and the region and transformed people’s lives.
The Forum on China-Africa Cooperation summit will strengthen ties with Kenya. “China wishes to seize the opportunities presented by this summit to further align our development strategies and elevate our comprehensive strategic cooperative partnership to new heights,” he said.
Under the leadership of President Ruto, the Chinese leader said, Kenya has advanced its economic reforms.
Funding opportunities
Meanwhile, Kenya has formally joined the Asian Infrastructure Investment Bank as a fully paid-up member.
President Ruto, who toured the bank’s headquarters in Beijing, said membership will enable Kenya to access concessional funding for key development programmes.
“Kenya is very proud of joining a family of very distinguished members,” he said. “We are looking forward to engagements with the bank for development of infrastructure and improvement of the welfare of our citizens.”
He cited infrastructure, climate change efforts, connectivity, regional cooperation and technology-enabled projects and programmes as some of the opportunities for financing.
The President made the remarks during a meeting with the bank’s president and board of directors chairman Jin Liqun and other officials at the bank’s offices.
