Discussion Paper No. 134 of 2012 on An Analysis of China-Kenya Bilateral Relations on Infrastructure Development

Abstract

Chinese activity in Africa is increasing at an exponential rate and Kenya is no exception. As the Kenyan government embraces the “Look East” policy, it has to deploy strategies to ensure that its engagements with China are truly win-win. These engagements bring both positive impacts and key challenges for African countries. Over the past decade, Chinese construction activity in Africa has been dramatically enhanced with the launch of China’s ‘going out’ national strategy and the support and coordination of the Chinese government, business associations and banks. This study explores the increasingly important economic and business relationship between the People’s Republic of China and Kenya. The focus is on how this partnership manifests itself in infrastructure development. As the Kenyan government continues to open its doors to China, particularly to help it with its infrastructure development agenda, it needs to be cognizant of the need to ensure that Chinese firms do not benefit at the detriment of Kenyans and indigenous firms, and that the China-Kenya socio-economic relationship is perceived as a win-win outcome with equitable bilateral trade and positive societal perception...