A long history of beneficial relations

Kenyan President Uhuru Kenyatta (left) shakes hands with Chinese President Xi Jinping prior to their bilateral meeting during the Belt and Road Forum for International Cooperation at the Great Hall of the People in Beijing on May 15, 2017. Also this month, the two countries’ bilateral ties were enhanced to a strategic partnership. PHOTO | ETIENNE OLIVEAU | AFP

What you need to know:

  • China is Kenya’s largest trading partner, loan provider and the fastest-growing source of overseas tourists.
  • China has also supported the geothermal project at Olkaria.

China’s friendship with Kenya dates back to more than 600 years ago, when Zheng He, the great navigator of the Ming Dynasty, arrived in Malindi.

He later took to China a giraffe, which was then taken as being representative of the Chinese mythological beast ‘Kylin’, symbolising royalty.

Since then, Zheng’s fleet repeatedly visited the Kenyan coast and other parts of Africa to spread the “blessing of peace” from ancient China.

ECONOMIC COOPERATION

Along the routes, trade and cultural exchanges were unlocked, seeds of friendship sowed, and the ancient civilisations of China and Africa were interconnected.

In 2013, President Xi Jinping and President Uhuru Kenyatta jointly announced the initiation of the China-Kenya Comprehensive Cooperative Partnership.

Since then, economic and trade cooperation between the two has deepened.

China is Kenya’s largest trading partner, contractor source country, and loan provider and the fastest-growing source of overseas tourists.

STANDARD GAUGE RAILWAY

Kenya has attracted the bulk of China’s investment in Africa.

Nearly half of Kenya’s 30 “flagship projects” are due to this close cooperation.

Along the Kenyan coast, following in the more than 600-year-old footsteps of Zheng He, one can find three projects that bear witness to benefits of the bilateral cooperation.

The Mombasa-Nairobi standard gauge railway, the “Millennial Project”, is the largest since Kenya’s independence, and is a crucial part of East Africa’s railway network.

UNEMPLOYMENT

By the end of last year, the construction of the 480km railroad had created more than 40,000 jobs for Kenyans, of whom 42.3 per cent are technical and management staff.

It will become both a regional artery of communication, and a link to the adjacent industrial parks and special economic zones.

Riding on the railway, Kenya is on a faster track to achieve a booming economic belt of modern manufacturing and accelerated growth.

Secondly, the Kenya power distribution system modernisation and strengthening project in Malindi is a signature undertaking with a concessional loan from China.

GREEN ENERGY

Since 2015, it has supplied 300,000 people and industrial projects along the River Tana with stable, high-quality electricity.

China has also supported the geothermal project at Olkaria, considered a model for “South-South cooperation” by former UN Secretary-General Ban Ki-moon.

The 145 geothermal boreholes raised the power generation capacity by 20 per cent, cutting the overall power price by 30 per cent.

Chinese firms are accelerating cooperation with their Kenyan counterparts in their endeavour to transform from contractors to investors.

LAPSSET

In Lamu, where some descendants of Zheng’s crew are said to live until today, is the Lamu Port, another of Kenya’s Vision 2030 flagship projects.

The port is being built by the China Communications Construction Company.

It is the initial part and major component of the Lapsset Corridor, a mega transport and infrastructure project in eastern Africa.

The port is expected to be Kenya’s second transport corridor.

It will boost the economy of northern Kenya by enlarging tourism, and also serve the landlocked South Sudan and Ethiopia.

TRADE PACTS

This month, a new chapter of China-Kenya cooperation opened with President Kenyatta visiting Beijing to attend the Belt and Road Forum for International Cooperation.

During the forum, China signed economic and trade pacts with 68 countries and international organisations, including three with Kenya.

China also announced the pump priming of another 100 trillion RMB into the Silk Road Fund and 380 trillion RMB equivalent lending schemes by the China Development Bank and the Export-Import Bank of China to support infrastructure, industrial capacity and trade financing.

Also this month, the two countries’ bilateral ties were enhanced to a strategic partnership.

SILK ROAD

The two presidents agreed to press on with the construction of roads and ports and the integration of the SGR project, Mombasa Port Terminal and Mombasa Special Economic Zone.

Deeper synergy of Kenya’s national development strategy with the belt and road initiative will strengthen cooperation for more tangible benefits for both countries.

As a historic stop and natural extension of the Maritime Silk Road, Kenya, will become the first stop for more Chinese enterprises to “Go into Africa”.

Dr Guo is the economic and commercial counsellor at the Chinese Embassy in Nairobi. [email protected]