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Kenya and China chart path to balance trade, boost exports, and attract investments

The Kenyan Cabinet Secretary (CS) for the Ministry of Investment, Trade, and Industry reaffirmed China’s pivotal role as a strategic partner in Kenya’s trade and infrastructure development during a high-stakes meeting with China’s Ambassador to Kenya, H.E. Guo Haiyan, on Thursday. The discussions centered on addressing Kenya’s significant trade deficit with China, which currently sees imports worth USD 3.6 billion against exports of just USD 300 million annually.

Ambassador Guo paid a courtesy call to the CS, accompanied by Principal Secretary for Trade, Alfred K’Ombudo, where both nations explored actionable strategies to narrow the trade gap. A key focus was on enhancing logistical support for Kenyan exporters, including plans to increase dedicated cargo flights to China to expedite the shipment of perishable goods such as fresh produce. This initiative aims to capitalize on China’s growing demand for high-quality agricultural products while empowering Kenyan farmers and exporters.

The Chinese Ambassador lauded Kenya as one of Africa’s most promising investment hubs, emphasizing Beijing’s interest in deepening economic collaboration. “Kenya’s stability, strategic location, and progressive policies make it an ideal partner for Chinese investors,” stated H.E. Guo. The talks delved into opportunities for Chinese firms to invest in Kenya’s Special Economic Zones (SEZs), particularly in pharmaceuticals and automotive manufacturing—sectors poised to drive industrialization and job creation.

The CS underscored Kenya’s commitment to creating an enabling environment for foreign investors, citing ongoing reforms to streamline business processes and enhance infrastructure. “By attracting Chinese investments into value-added industries, we aim to diversify our export base, reduce the trade imbalance, and create sustainable opportunities for Kenyans,” the CS remarked.

Principal Secretary K’Ombudo highlighted the potential for collaboration in technology transfer and skills development, particularly in the automotive sector, to bolster Kenya’s manufacturing capabilities. He further emphasized the government’s focus on leveraging SEZs to position Kenya as a regional manufacturing and export powerhouse.

Ambassador Guo reiterated China’s support for Kenya’s development agenda, including partnerships under the Belt and Road Initiative (BRI), which has already seen transformative infrastructure projects such as the Standard Gauge Railway (SGR). Both parties agreed to fast-track negotiations on trade protocols and investment incentives to unlock mutual benefits.

The meeting concluded with a shared resolve to strengthen bilateral frameworks, ensuring Kenya’s agricultural and manufactured goods gain broader access to China’s vast market. Stakeholders anticipate that these efforts will not only bridge the trade gap but also elevate Kenya’s profile as a prime destination for global investors, driving economic growth and shared prosperity.

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