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China’s march in Kenya upsets local firms

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Officials of a Chinese company on site of a road construction project near Isiolo town in July 2008.  The road will join Isiolo town and Ethiopia. Photo/FILE

Officials of a Chinese company on site of a road construction project near Isiolo town in July 2008. The road will join Isiolo town and Ethiopia. Photo/FILE 

By DAVID OKWEMBAH
Posted  Saturday, January 23  2010 at  21:00

In Summary

  • Contractors say the Chinese get big easy deals and could drive them out of business

“How do you expect us to compete when the ground is not level?” the contractor asked.

Barely surviving

While the Chinese make their money, Kenyan firms claim to be barely surviving on small projects awarded by local authorities and the Constituency Development Funds (CDF).

Peter Musango, managing director of Kirinyaga Construction, one of the leading road contractors in the country, was not available for comment as fortunes of the firm are said to have dwindled due to the stiff competition from Chinese firms.

At one time the company owned by the Mathira MP Ephraim Maina controlled major contracts in the road sector as well as construction.

Mr Ipu said Kenyan firms might be losing out on some of the major capital projects because of the conditions set by donors that blocked local firms.

The latest edition of London-based African Confidential cautions African countries, Kenya included, to tread carefully when dealing with China.

“For now, because of their richness in natural resources and as a nod to South-South solidarity, African countries may at times punch above their weight in China’s strategic considerations.

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Yet China’s relations with Africa are just a small piece of its foreign policy when seen in a global context, and African countries would do well to remember that,” the magazine notes.

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