Kenya lobbies for trade relations with China

By Macharia Kamau

Kenya is partnering with China to bridge the gap in trade between the two countries that heavily favours China, Deputy Prime Minister and Trade Minister Uhuru Kenyatta has said.

He said to increase the number of exports to China, the Government would diversify products and lobby for some to be given preferential treatment by China.

"Our export of black tea to China is growing at 20 per cent. Our biggest competitor in black tea, Sri Lanka, enjoys some preferential tariffs, and hence has an edge over Kenya, and I would like to look into the possibility of China according Kenya similar preferential treatment," he said.

According to the Export Promotion Council, Kenyan exports to China were worth a measly Sh1.47 billion compared to the Sh44.7 billion worth of imports from China.

Trade imbalance

The balance of trade between Kenya and China is currently at Sh44 billion.

"The trade imbalance is a worrying trend for Kenya, given that correcting it is difficult due the economic disparities existing between the two countries," he said.

Kenyatta spoke yesterday after holding talks with a Chinese trade delegation visiting Kenya, led by Commerce Minister Chen Deming.

He said the China and its companies would increase investments in Kenya, by setting up factories in the country and through partnerships with the Government in infrastructure projects like road, rail and ports.

"Some of these projects are already at their feasibility phase, and it is just a matter of time before the implementation starts," he said. Other sectors that the Chinese are eyeing include titanium mining and cement manufacturing.

Trade imbalance

Deming said manufacturing by the Chinese companies locally would boost Kenya’s exports to China, and the international market.

He said there are more than ten companies that have invested an estimated $60 million (Sh4.6 billion) in Kenya and more have shown interest of setting up plants.

Earlier in the day, the Deming held separate talks with President Mwai Kibaki, and acting Finance Minister John Michuki.

China was Kenya’s second largest exporter in 2007 after the United Arab Emirates.

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