Kenyan president with his Wife Racheal pose for a photo with China president and her wide
President William Ruto’s recent visit to China, where he called for increased Chinese investment in Kenya’s renewable energy and ICT sectors, has sparked a flurry of discussions in both countries. Ruto’s proposals, which encompass the manufacturing of electric cars, construction of data centers, and the digitization of government services, have piqued the interest of both Kenyan and Chinese investors.
During his visit, President Ruto positioned Kenya as the gateway to Africa, emphasizing the country’s strategic location and its role as the landing site for six undersea fiber optic cables connecting various African states. In his speech at the Belt and Road Forum on International Cooperation, he stated, “Kenya remains open for trade and investment, and is committed to becoming a globally competitive player in the digital economy. This aspiration naturally implies numerous opportunities for smart investors and proactive development partners.”
Ruto also highlighted Kenya’s significant achievements in the digital economy, particularly mentioning M-Pesa, the pioneering mobile payment system in Africa. “We never tire in proclaiming that Kenya pioneered the era of mobile payment and mobile money. We have fully integrated this mobile digital payment system into our economy. Payment for goods and services both from public and private providers is now primarily mobile and digital, proudly powered by Chinese companies,” he said.
The President went on to call for investments in establishing 25,000 digital villages, a key component of Kenya’s Bottom Up Economic Transformation Agenda (BETA). He also emphasized that the government has made digital literacy an integral part of the education curriculum.
China’s response to President Ruto’s proposals has been positive, with a government spokesperson, Hua Chunying, stating, “The Chinese and Kenyans both find our cooperation rewarding. We will work with Kenya for an even more robust comprehensive strategic cooperative partnership.” While details of the agreements reached during the bilateral talks are yet to be disclosed, it is clear that both countries are eager to strengthen their collaboration.
President Ruto’s vision for Kenya as a hub for green energy has also gained traction. He assured potential investors of a welcoming market and incentives for those involved in e-mobility vehicle manufacturing. “We have opened doors for firms manufacturing e-mobility vehicles and assure them that the government would be the first to buy the products,” he declared.
In addition to green energy, President Ruto advocated for investments in data centers and the acceleration of government service digitization under the eCitizen platform. He emphasized the importance of ICT hubs in building knowledge and talent among the youth, making them job-ready.
Moreover, President Ruto promoted the extension of the standard gauge railway from Naivasha to Malaba, connecting Kenya to Uganda, the Democratic Republic of Congo, and Congo Brazzaville. This infrastructure project aims to facilitate trade and market access for companies setting up in Kenya and aligns with Ruto’s vision of Kenya as a green manufacturing destination.
The President also encouraged partnerships in e-commerce and fintech sectors, highlighting the progress made under the Hustler Fund. “I am happy that the Hustler Fund has benefited from this cooperation and other fintechs that are working on making sure Kenya is financed and providing access to many Kenyans in the space of SMEs,” he said.
However, investors on both sides have expressed concerns about the economic environment and challenges in the cost of doing business and securing markets for products. Chen Congcong, the chairman of the Kenya China Chamber of Commerce, pointed out that the trade imbalance is causing difficulties. He suggested that a common market platform and a more unified approach to marketing would alleviate these issues.
The Kenyan-China relationship is poised for growth, with a focus on technological innovation, green energy, and infrastructure development. President Ruto’s visit to China has laid the foundation for increased collaboration between the two countries, bringing mutual benefits and opportunities for further economic development.
