Kenya is leaning into closer ties with China, even as global trade wars escalate prominently featuring the Asian country and the United States.
As the two giants flex muscles on matters of trade, President William Ruto is scheduled to have an eight-day visit to China shortly after the Easter holidays.
This is Ruto’s second trip to China in less than a year, after his trip in September 2024, where he asked China to support Africa’s call for reforms of the international financial system that, he said, was unjust to many countries in the Global South, including Africa.
Ruto also called on China to work with Africa on “debt treatment”, particularly re-profiling of debt to incorporate a longer grace period and longer tenure for existing and future financial financing.
As the president heads to China, he hopes to bag more development projects including roads and railways.
During the 2024 Forum on China-Africa Cooperation (FOCAC), Ruto secure Ksh40 billion in concessional financing for the completion of 15 stalled infrastructure projects including roadworks, energy transmission, ICT connectivity, and water projects distributed across ten counties.
A signature project under this cooperation is the Standard Gauge Railway (SGR), which is now set for extension from Naivasha to Malaba. This will enhance regional integration and trade flows with Uganda, DRC, and South Sudan.
Ruto will also be looking to get more financing for the Talanta Sports City project, which is co-financed and executed with Chinese partners.
Other projects that the president hopes to advance in his trip include rural roads connectivity, dams construction, and urban mobility improvements such as the Nairobi Intelligent Transport System (ITS) and junction upgrades.
Ruto will also be looking to advance value chain development and industrial collaboration, in a bid to balance trade between China and Kenya. Currently, Kenya imports high volumes of manufactured goods and machinery, while its exports to China are limited to a few primary products such as tea, leather, sisal fibre, fish, and scrap metal.
Loans
In his trip, the president is pursuing a strategy of loan portfolio diversification, where the Renminbi (RMB) is increasingly seen as a viable alternative.
By securing RMB-denominated financing through institutions such as the China Eximbank, Ruto is looking to reduce Kenya’s exposure to dollar shocks while accessing concessional terms and longer repayment periods. People Daily Digital understands that Kenya is negotiating for loans tied to revenue-generating infrastructure, ensuring that borrowed funds yield economic returns through tolling, taxation, and industrial productivity.
Ruto is also expected to sign MoUs and operational frameworks in blue economy, scientific and technological cooperation, Belt and Road Initiative alignment, concessional loans, vocational education, Artificial Intelligence and Digital Economy governance, cybersecurity and railway sector cooperation.
Francis Muli
Francis Muli is a passionate digital journalist with over seven years of experience in crafting compelling stories across various platforms. His major focus is in business, politics and current affairs. He brings a keen eye for detail and a commitment to uncovering the truth.
He has contributed to leading publications across the country.
When not chasing stories, you can find Muli exploring new technologies, attending local events, or reading fiction.
Connect with Francis Muli on X @FMuliKE and Facebook (Francis Muli) to follow his latest stories and insights.
View all posts by Francis Muli