Uhuru signs Sh425bn financing deals with Chinese government

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

Among the projects set to benefit from the deal is the standard gauge railway linking Mombasa port and Malaba that is expected to improve access to Uganda, Rwanda, Burundi and eastern Democratic Republic of the Congo.

“The rail link, particularly, is important in the context of East Africa’s shared goal of ensuring quicker movement of people, goods and services,” President Kenyatta said after signing the deals with Chinese President Xi Jinping.

“These agreements deepen our practical cooperation. China supports Kenya’s quest for industrialisation,” President Xi told President Kenyatta shortly before the agreements were signed.

READ: Uhuru China visit to deepen Eastern ties

Other areas China was exploring for investment include agribusiness, irrigation, fertiliser production and purchases, and technology, President Xi said.

China would also work with Kenya to establish a clearing house for renminbi, the Chinese currency also known as the yuan currency in Nairobi which is angling to become a leading financial services hub in Africa.

President Kenyatta was welcomed with a 21-gun salute at the Great Hall of the People, the most iconic building in China.

President Kenyatta said Kenya Airways would start direct flights to Beijing from Nairobi as soon as suitable flight times were granted.

President Xi asked Chinese officials to expedite the granting of the rights. The direct flights would benefit fresh produce exporters who have been eyeing the populous Asian nation.

Although some fresh produce exporters have managed to make inroads into Japan, the direct flight to Beijing promises a faster link to China which has a potential to absorb horticultural crops, tea and coffee.

For Kenya Airways, the announcement comes as another major diplomatic breakthrough just one month after Mr Kenyatta negotiated another direct flight from Nairobi to Abuja.

READ: Uhuru deal paves way for KQ to launch Abuja flights

Mr Kenyatta said the agreements were part of efforts to strengthen ties with China which he described as “a true friend, a partner in our development.”

The two countries have already hinted at plans to set up a bilateral advisory committee to manage their diplomatic and commercial relationships.

Mr Kenyatta said China would send a high-powered delegation to Kenya’s golden jubilee celebrations in December. So far, China has significantly raised its direct funding of infrastructure projects in Kenya, a key market of its goods in the last 10 years.

Among other top projects, the Asian nation constructed the Sh31 billion Thika Superhighway which was opened last year. It has undertaken expansion of a hospital in Gatundu and is currently expanding Langata road.

China is expected to leave a large footprint on the country’s Vision 2030 flagship projects.

“China will stand by Kenya, as a strong economic and development partner,” President Xi said. He said China was committed to a “special partnership” and would support development projects in Kenya.

President Kenyatta invited Chinese investors to consider opportunities in oil and gas, power generation, Lamu Port corridor and the technology city at Konza.