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Deals with China will hurt Kenya, warn researchers

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Energy minister Kiraitu Murungi (left) talks to Chinese ambassador, Mr Deng Hongbo, during the launch of oil exploration last week. A survey to be released on Tuesday warns over China-Kenya ties. Photo/FILE

Energy minister Kiraitu Murungi (left) talks to Chinese ambassador, Mr Deng Hongbo, during the launch of oil exploration last week. A survey to be released on Tuesday warns over China-Kenya ties. Photo/FILE 

By JIM ONYANGO  (email the author)
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Posted  Tuesday, November 3  2009 at  00:00

The Canadian firm has held the mining permit for nearly 10 years without starting the project.

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Local researchers feel that Chinese firms are undercutting local companies already engaged with Kenya.

They estimate that more than 50 per cent of construction activities in Nairobi both private and state-sponsored have been captured by Chinese construction firms usually preferred for projects ranging from roads, water systems, power generation and hospitals.

“Fears have been raised about threats to engineering talent and skills and the collapse of local construction companies due to invasion of Chinese construction firms” says the report.

Eve though Beijing’s scramble for influence and resources in Kenya is raising deep concerns among analysts and researchers, the ministry of foreign affairs says it is preparing a business matchmaking conclave between Chinese and Kenyan firms on the sidelines of the China-Africa forum in Egypt with a view to milking opportunities from the Far East country.

“The ministry intends to utilize the opportunity to leverage on the economic and commercial opportunities offered by China…the government will make arrangements to provide comfortable ground transport in Sham El Sheikh during the breadth of the programme” says the ministry in a letter inviting local businesses to participate in the meeting in China-Africa meeting in Egypt.

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