Queries arise even as Kenya-China seal economic pacts

By DANIEL WESANGULA

China has successfully wooed the last of the stubborn damsels in her sights in her quest for world domination and on her journey to another stab at becoming the world’s largest economy.

In every Eastern Africa trip, the Chinese premier Li Keqiang has had sweet words for her host country. While speaking in Addis Ababa, Keqiang begun his speech with a proverb; ‘The Amharic hold dear to heart. “When spiders’ webs unite, they can tie up lion,” he said. But that was not all, while concluding a press conference at State House in Nairobi, he still mustered even sweeter words for the adulating Kenyan delegation.

“In Chinese we say the best is saved for last,” and with that it was all systems go for the signing of a number of contracts with Chinese. Top among them, the Government’s pet project of the Standard Gauge Railway, whose contract will be signed today.

In what both governments describe as a ‘win-win’ relationship, the China continues to dominate the emerging markets on matters development on infrastructure, health, heritage and security projects. In his visit to Nairobi, which he will also meet a host of other regional presidents (Rwanda, South Sudan, Tanzania) billions of shillings worth of deals will be sealed.

Welcome move

Although the aid is a welcome move for economies entangled in budget deficits across the continent, recurrent questions also arise on the Far East’s economic giant’s developmental aid plan and the ability of the recipient nation’s ability to fully utilise the aid packages. “As much as we need the aid, questions exist over our own governance systems. China’s policy of non- conditional aid could play into the hands of the corrupt,” David Owiro, an analyst at Institute of Economic Affairs told The Standard on Sunday.

Even as we take on economic pacts, glaring trade imbalances between the two countries also exist. Also queries have been raised on the Chinese aid packages and it is always shrouded in mystery on whether financial assistance comes as aid, grants or loans.

“The challenge will be to achieve a balance between these to trading partners,” he said. Across the continent, the Chinese have undertaken massive development partnerships. Particularly in countries that have large reserves of natural resources. Tanzania, Ethiopia, Sudan, Mozambique, Senegal and Mali have all been beneficiaries of the Chinese expansionist agenda.

However, analysts argue that if the olive branch extended by our leaders to Chinese investors is well intended, then the results can help propel Kenya into a middle income generation country. “They have invested heavily in infrastructure development which accounts for huge expenditure into budgets. If they bridge this gap then the Government will have more funds at their disposal to concentrate on other areas of development,” Owiro said. Among the major deals to be signed include the volatile Standard Gauge Railway project, which has been under the spotlight recently over its tendering process. Today, Keqiang outs pen to paper, the final act in ensuring the project kicks off and is seen to conclusion. The Standard Gauge Railway, which, when completed, is expected to link the Kenyan port of Mombasa to the Burundi capital Bujumbura, through Kampala and Kigali. It will also expand to the South Sudan capital of Juba. Apart from infrastructure, the 18 agreements to be signed by the two governments will also cover agriculture, sports, culture and heritage and wildlife conservation to the tune of Sh850million.

The wooing of Kenya is a situation inherited from the previous regime, with the Chinese undertaking what was by then their biggest infrastructure project in Kenya, Thika Road.

Their coming into Kenya coincided with an increase in poaching incidences which saw assurances from the Chinese embassy, and visits by top Chinese celebrities like former NBA star Yao Ming and actress Li Bingbing, who is also a UNEP goodwill ambassador.

Upon his inauguration, President Uhuru chose China as the destination of his first overseas state visit. Last year, Sino- African trade stood at $210 billion according to Beijing, with this figure projected to stand at $400 billion by 2020. “Pragmatic cooperation cannot happen in the absence of financial support. China has decided to increase credit lines to Africa by Sh850billion and will boost the China-Africa Development fund by Sh170billion,” Li said.

Trade between Nairobi and Beijing was worth Sh258billion and contracted direct investment from China to Kenya was Sh50billion.