Kenya is keen to tap more investments from China and bridge the trade imbalance even as it pursues strategic deals with the US, Western markets and the Gulf Nations.
This, as the China-Africa Economic and Trade Expo (CAETE) comes to the continent for the first time, with a three-day forum in Nairobi, a strategic move by China to tighten its grip on continent.
The move comes in the wake of increased focus on the continent where Europe, the US, Middle East and other Asian countries are pushing for a bigger stake.
Kenya is eying investments in Special Economic Zones and Export Processing Zones with a focus on agro-processing and value addition, in a strategy to cut export of raw materials.
Priority areas in the agriculture sector includes value chains in crops and livestock with targeted sub-sectors including leather, textile and apparel, dairy, edible oils, tea, coffee and rice.
Speaking at the Expo yesterday, Investments, Trade and Industry CS Rebecca Miano termed Kenya as the gateway to East Africa and the continent, adding that the country is also keen to attract investments in healthcare (including investments in pharmaceuticals), manufacturing, affordable housing, MSMEs, digital trade and e-commerce, ICT and the creative economy.
Her ministry has been tasked with doubling Foreign Direct Investments (FDIs) in the medium-term, from the $800 million (Sh105.2 billion worth of FDIs attracted last year to, to at least $1.6 billion (Sh210.4 billion).
“The following year, we will be looking to doubling what we will have achieved this year and looking at the numbers, the momentum we feel, forums like these where we recently had AmCham, we saw a lot of appetite from American companies, we have been to Tokyo and other destinations, I am confident that we will meet the target that the President has given us,” Miano said.
China remains Kenya’s biggest import source, exporting goods worth $7.9 billion (Sh 1.03 trillion) last year.
It is the biggest contractor in the country in key areas of roads, ports, rail , building and construction among others.
People's Government of Hunan Province vice governor Cao Zhiqiang said China will continue implementing President Xi Jinping’s African policies.
“China Will implement agreements agreed with Africa leaders including in the energy sector, manufacturing and agriculture to improve good security,” Zhiqiang said.
For the last 14 years, China has remained Africa's largest trading partner, serving as the primary destination for African exports.
In 2022, trade in goods between China and Africa surged by 10.9 per cent, reaching $282 billion (Sh37.1 trillion) with Keya enjoying a sizable share.
Kenya's exports to China amounted to $ 269 million(Sh35.4 billion), including key products such as coffee, avocado, tea, macadamia, flowers, and fruits.
Conversely, China ranks as Kenya's top exporter, accounting for 18 per cent of Kenya's total imports, with major imports including electronics, machinery and textiles.
More than 10 deals were signed between China and African countries during the first day of the Nairobi expo, with Kenya securing a deal in agro-processing.
President William Ruto's administration foreign policy is seen to strike a trade and investment balance with both the East and the West , unlike his predecessor who threw more weight on China.