When Cabinet Secretary for Investment, Trade, and Industry Lee Kinyanjui met Chinese Ambassador to Kenya Guo Haiyan last week, their discussions focused on enhancing trade ties between Kenya and China. A key priority was addressing the trade imbalance through initiatives such as increased cargo flights to China to facilitate fresh produce exports. This aligns with strengthening bilateral relations under the ninth Forum on China-Africa Cooperation (FOCAC).
China has consistently shown a willingness to narrow trade gaps with African nations, providing an opportunity for these countries to increase their exports to the Asian economic powerhouse. Over the past 61 years, Sino-Kenyan relations have grown significantly, reaching a strategic level that other African nations can learn from. However, Kenya has yet to fully capitalize on the economic potential of this partnership. With President William Ruto’s administration prioritizing an economy-driven foreign policy, it is crucial to build on past initiatives to address the trade deficit.
Kenya currently imports goods worth $3.6 billion from China while exporting only about $300 million. To close this gap, Nairobi must adopt policies that boost exports and attract Chinese investors, particularly through Special Economic Zones (SEZs) and industrial parks. The Kenya Kwanza administration’s initiative to roll out industrial parks nationwide is a positive step. If well-executed, these parks can drive economic growth, create jobs, and attract both local and foreign investment. SEZs have proven effective globally in promoting manufacturing, services, and innovation, and Kenya can leverage them for industrial expansion.
A strong policy framework is essential for sustaining investment in these parks. While tax incentives can attract foreign investors, a long-term approach should include fiscal policies that promote business growth while maintaining economic stability. When negotiating infrastructure projects with Beijing, Kenya should also prioritize trade agreements that facilitate export growth.
China remains Africa’s largest trading partner, and its willingness to import more African goods presents an opportunity for economic diversification. This could significantly benefit Kenya’s farmers and producers, especially if they are made aware of export opportunities. Expanding avocado, macadamia, and purple tea cultivation—key high-demand products in China—could provide a profitable alternative to low-priced maize. Government initiatives such as sensitization programs and seedling distribution would help farmers tap into this market.
Joint ventures between Kenyan and Chinese businesses could further boost exports and reduce the trade deficit. Under FOCAC, China has pledged $142.1 million in emergency food assistance, plans to develop over 6,600 hectares of agricultural demonstration areas, and will send 500 agricultural experts to Africa. Additionally, China has committed to providing 60,000 training opportunities for Africans, particularly for women and youth. Kenya should take full advantage of these resources to strengthen its agricultural sector and enhance industrialization efforts.
Events like the China-Africa Economic and Trade Expo (CAETE), held in Nairobi last year, offer additional platforms to streamline trade. Addressing these gaps will lead to a more balanced and mutually beneficial economic relationship between Kenya and China.
During the ninth FOCAC meeting, President Xi Jinping outlined ten action plans covering trade, industrial cooperation, agriculture, health, and security. If fully implemented, these initiatives could provide significant economic support for Africa, particularly in infrastructure development.
Africa’s trade with China largely involves exporting raw minerals and agricultural goods while importing electronics, machinery, and vehicles. By leveraging strong ties with Beijing, African nations can attract investment, create jobs, and promote industrialization, leading to long-term, sustainable growth.
