Kenya signs Sh425bn financing deals with China

Posted: August 20, 2013 in Politics/Current issues
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President Uhuru Kenyatta and First Lady Margaret Kenyatta are welcomed by Chinese President Xi Jinping and First Lady Mrs Peng Liyuan at the Great Hall of the People in Beijing.

By Nixon Kanali, Nairobi Kenya.

On Monday President Uhuru Kenyatta secured $5 billion (Sh425 billion) in investments from China covering railways, energy, wildlife protection and joint ventures.

The deal would see the money used to construct a railway line and an energy project, deepening ties with the Asian country keen to expand investment in Africa.

The cash would also be spent on energy projects, a standard gauge railway linking the port of Mombasa in east Africa’s biggest economy to its border town of Malaba, meant to provide faster access from Kenya’s port to markets in the region,

The rest would be used to improve wildlife protection, in a country where well armed criminal gangs have killed elephants for tusks and rhinos for their horns that are often shipped mainly to China for use in ornaments and medicines.

China president Xi Jinping said China supports Kenya’s quest for industrialization and plans to host a clearing house for the Chinese renminbi currency in Nairobi, as part of Kenya’s plans to become an international financial hub.

Kenyatta on the other hand urged China to invest in Kenya’s newly discovered oil sector, power generation, a technology city near the capital city and a new port in Lamu, north of Mombasa.

China is already key player in Kenya, constructing capital-intensive flagship projects, mostly roads.  This new development could therefore be a great milestone in the country’s development.  If implemented well, it could open up the country as an economic hub to the rest of the world and even boost investor confidence.

It could also be an opportunity to create employment opportunities for young people.

 

 

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