Money Markets
Deals with China will hurt Kenya, warn researchers
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
The Canadian firm has held the mining permit for nearly 10 years without starting the project.
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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in the construction industry, the chinese are cheap, and also the local capacityis lacking due to years of stagnation. we are yet to see local contractors undertake effectivley the multibillion jobs necessary to grow tthis economy.
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World Bank has hurt Kenya more than China ever will. Through failed AID policies and corrupt deals and other interventionist reforms the World Bank as currently constituted has been a major reason why we have been unable to compete globally. Everyone now knows that the World Banks is western tool of external markets control. It is therefore not suprising that they would fund such as research.




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