Kenya strikes significant deals during Ruto’s state visit to China

President William Ruto engaged in bilateral talks with President Xi Jinping today during his inaugural State Visit to the People’s Republic of China. Leading a high-level government delegation, President Ruto participated in productive discussions with his Chinese counterpart, marking a new era in the Kenya-China Comprehensive Strategic Partnership.

According to Statehouse, the talks resulted in significant diplomatic and economic breakthroughs, enhancing cooperation in trade, investment, infrastructure, and sustainable development.

“Discussions between the two leaders focused on key priorities such as trade expansion, investment promotion, and development cooperation. Both sides reaffirmed their commitment to aligning the Belt and Road Initiative (BRI) with Kenya’s national development agenda,” stated Statehouse spokesperson Hussein Mohamed.

In a major step towards deepening bilateral ties, Kenya and China upgraded their relationship to a ‘Comprehensive Strategic Partnership in the New Era’, marked by the signing of 20 Memoranda of Understanding (MoUs) and other frameworks of cooperation. These agreements cover various sectors including infrastructure, trade, education, digital economy, science and technology, as well as people-to-people exchanges and cultural cooperation.

During the extensive engagement, Mohamed noted that China agreed to collaborate with Kenya on implementing strategic connectivity development projects. The agreements include investments for the extension of the Standard Gauge Railway to Naivasha (Phase II) and from Naivasha to Malaba (Phase III). Additionally, they encompass the expansion and dualing of the Nairobi-Nakuru-Mau Summit–Malaba highway, the Kiambu-Northern Bypass, the Eldoret Bypass, and the construction of the Nithi Bridge.

“This cooperation cements Kenya’s role as a key Belt and Road Initiative (BRI) and regional logistics partner, while integrating East Africa’s transportation network and enhancing intra-regional trade,” he said.

Furthermore, the Statehouse spokesperson confirmed that China has opened avenues for increased private sector investment, which will be directed towards the listed infrastructure projects through Public-Private Partnerships, thus accelerating development and deepening economic ties.

Thursday’s meeting also saw the signing of financing instruments for the implementation of the TVET III Project, crucial for equipping TVET institutions and enhancing technical skills among Kenya’s youth. Additionally, it included the Intelligent Transport System and Junction Improvement Project for Nairobi, designed to revolutionize traffic management by minimizing human interfaces and streamlining the payment of traffic penalties.

“Kenya and China also committed to further collaboration in the rollout of Kenya’s National Digital Superhighway Programme, which involves the expansion of the national fibre optic network. Additionally, both countries agreed to enhance cooperation in road and water infrastructure,” he said.

In support of Kenya’s Universal Health Coverage (UHC) under the Bottom-Up Economic Transformation Agenda, China pledged grants to improve hospital infrastructure and committed to private sector investment in pharmaceutical manufacturing.

A Framework Agreement on Economic Partnership for Shared Development was also signed, laying the groundwork for a comprehensive trade deal. This agreement aims to expand market access for Kenyan exports, including tea, coffee, avocado, macadamia, and other agricultural products.

“China commended and expressed support for Kenya’s ongoing efforts on liability management through sustained economic reforms to create the fiscal space necessary for sustainable development,” he stated.

“The two Presidents reaffirmed their commitment to cooperation in green energy, innovation, tourism, and regional peace. President Ruto acknowledged China’s support for peace and stability in the Horn of Africa and the Great Lakes Region, while President Xi lauded Kenya’s contribution to the UN Multinational Security Support Mission in Haiti. Both leaders emphasised the importance of a peaceful and rules-based international order,” Mohamed added.

During the Kenya-China Private Sector Roundtable and Business Forum on Wednesday, President Ruto oversaw the signing of investment agreements worth approximately KSh137 billion (USD 1.06 billion). These agreements cover key sectors such as manufacturing, agriculture, tourism, and infrastructure, and are expected to create over 28,000 jobs across the country. Notable projects include a Special Economic Zone in Kilifi County (expected to create 5,000 jobs) and manufacturing expansions in Machakos, Murang’a, and Mombasa. Agricultural initiatives in Kajiado and Baringo counties, focusing on poultry, aloe, and vineyard cultivation, are projected to generate 10,500 jobs.

On Friday, President Ruto will visit Fujian Province, a key manufacturing powerhouse in south-eastern China, known for its vibrant industrial base and rich tea heritage. During this visit, he will engage with leading Chinese manufacturers, particularly in the e-mobility and tea sectors, among other industries, to promote investment opportunities in Kenya’s growing manufacturing ecosystem.