Japan, China rivalry leaves Kenya with contract billions

Aid provision

“Japan was known for the tough aid conditions employed by the west but appears to be loosening up,” said Mr Ikiara.

Japan has applied strict criteria for aid provision to developing countries in Asia, Africa and elsewhere in the world with its focus on democracy and human rights records.

China, on the other hand, has ignored political, environmental and humanitarian considerations.

Dennis Awuori, a former Kenyan ambassador to Japan and now chairman of Toyota East Africa, says that Japanese government was less enthusiastic in pushing the private sector to invest in Africa until 2008 when its strategy to prop up private investments was drawn.

The fresh push comes at a time when the presence of Japanese firms such as Sharp, Sony and Konoike is fading away despite being dominant in the 1980’S and early 1990’s.

In 2006, the value of Chinese imports overtook those of Japan to stand at Sh64.4 billion in 2008 compared to Sh44.8 billion of Beijing.

In 2008, Tokyo set the twin goals of doubling its development aid to Africa and helping Japanese companies to double their own investment in the continent to $3.4bn by 2012.

Japanese interest in Kenya is part of the wider plan to exert its influence in Africa, especially on the diplomatic and economic front at the global stage.

Tokyo has counted on the support of the continent’s 53 countries for its bid for a permanent United Nations Security Council seat.

China has been on a charm offensive in the continent over the past decade stretching its growing clout from Asia to Africa to its advantage on the global stage.

For instance, Beijing managed to scupper a deal in Copenhagen by refusing to agree to emissions cut and is currently pushing, with increasing success, for the Yuan to be recognized as an international currency and be at par with the US dollar.

It is such clout that Japan is seeking by stepping up its engagement with countries such as Kenya.