Kenya Strengthens Ties with China Amid Global Trade Wars

Kenya is deepening its economic and political relationship with China as global trade tensions between the Asian powerhouse and the United States continue to escalate. President William Ruto is set to embark on an eight-day diplomatic visit to China following the Easter holidays, marking his second trip to the country in less than a year.

Strengthening Economic Partnerships

During his previous visit in September 2024, President Ruto advocated for reforms in the international financial system, which he described as unfavorable to African nations and other countries in the Global South. He also pushed for debt restructuring initiatives, including extended grace periods and longer repayment terms for existing and future loans.

This upcoming visit aims to secure additional funding for key infrastructure projects, including:

• Expansion of the Standard Gauge Railway (SGR) from Naivasha to Malaba
• Completion of 15 stalled infrastructure projects across ten counties
• Development of the Talanta Sports City project
• Rural road connectivity and dam construction initiatives
• Nairobi Intelligent Transport System (ITS) improvements

Trade Imbalance and Industrial Collaboration

Currently, Kenya’s trade relationship with China is heavily skewed, with imports of manufactured goods and machinery far outweighing exports of primary products like tea, leather, and sisal fiber. President Ruto aims to address this imbalance through enhanced value chain development and industrial cooperation agreements.

Financial Strategy: Diversifying Loan Portfolios

A key focus of the visit will be financial strategy, with Kenya looking to:

• Secure RMB-denominated financing through Chinese institutions
• Reduce exposure to US dollar fluctuations
• Negotiate loans tied to revenue-generating infrastructure projects

The president is expected to sign several Memoranda of Understanding (MoUs) covering areas such as:

• Blue economy development
• Scientific and technological cooperation
• Belt and Road Initiative alignment
• Artificial Intelligence and Digital Economy governance
• Cybersecurity and railway sector partnerships

This article is based on original reporting by People Daily Digital. Full credit goes to the original source.