Kenya-China relations mutually beneficial – Infrastructure PS

The Ministry of Transport, Infrastructure, Housing, and Urban Development Principal Secretary (PS) Paul Maringa has said Chinese companies are carrying out more economic empowerment activities in Kenya than is being reported.

The PS, who was reflecting on the 20 years since the establishment of the Kenya China Economic Trade Association (KCETA), noted that Chinese companies have made heavy investments to support various sectors in the country. Referencing cooperation to realize Kenya’s Vision 2030 and Big Four Agenda, Mr. Maringa noted that the foundations of the current ties have been ‘well-structured and well-reasoned’ strategy plans.

Besides investments in infrastructure development, the PS said Chinese firms are doing considerably well in the areas of agriculture, manufacturing, health and housing. Contrary to some skepticism, he says Kenya has benefited tremendously from Chinese engagements locally.

“If you follow footprints of Chinese investments in the last 20 years, you see the point. Their leaders (Chinese) in Kenya are investing in housing, the for example, where the new affordable housing initiative in Pangani has been developed by a Chinese company (China State Construction Engineering Corp – Kenya).” He said

He defended the ongoing expansion of infrastructure projects in the country noting that development that has no physical component is ‘useless’.

“It is very important that we see more than 10,507 kilometers of new roads in Kenya that have been build primarily from the support of Chinese companies and you can see the magnitude of their footprint,” said the infrastructure ministry accounting officer

Thanks to the prevailing cooperation with China, the PS said major development activities are ongoing across Kenya, including in the remotest of rural areas. He says China has helped Kenya’s rapid transformation in various fields.

He cited the ongoing Nairobi Expressway, which is set for completion in March 22. He disclosed that the project being financed by a Chinese company to the tune of Kshs.55 Billion plus Kshs.10 Billion from the Kenyan government under the Public Private Partnership (PPP) model has employed between 4000 and 6000 Kenyans. He says the highway has massively benefited Kenyans even before its completion.

“By the time we finish the project, I am looking at our book of accounts, and observing a direct injection into our economy of Kshs. 24 billion. This is Chinese money, not Kenyan money. And really we need to celebrate our partnership for bringing this level of goodwill.” he noted

Besides this, the PS noted that the Expressway and other roads that are currently being constructed with support from Beijing will ease traffic jams  in the country’s capital Nairobi and its cost implications, currently valued at well over Kshs 100 billion every year.

He indicated that the primary cause of gridlock in Nairobi has been Uhuru Highway (where the expressway passes) for the reason that it is the primary trunk road that affects every movement in the city.

“Clearly when we decongest Nairobi, we are looking at a situation where we would save ourselves up to Kshs. 70 billion. It is a major benefit. These transformations are the things we want to appreciate,” he said

According to the PS, the Expressway is one of the successful PPP projects and it has demonstrated that the model can work in Kenya. Going forward, the PS indicated opening up of the landscape especially after reforming the PPP regulations so as to have more PPP projects in Kenya.

“We are learning through our partnership with China that all things are possible. The original timeline for this project was 3 years and if you lose time it can go to four years, but we are doing it in a record time of 18 months and in the highest quality standards.” he said

Maringa was however quick to point out that the Chinese firms are not just putting money into projects alone. The Principal Secretary lauded the Chinese companies in Kenya for fulfilling their corporate social responsibilities faithfully. He disclosed that the generous contribution from Chinese companies has gone past Kshs.71 billion noting that this was just a demonstration of their goodwill.

“I want to celebrate the Chinese companies because they have had this silent policy where every Chinese company operating in Kenya rolls out massive CSR.” the PS acknowledged

Whereas Chinese companies are investing a lot of money in Kenya, he said their government in Beijing has not stopped extending support in form of loans and grants that are having a major impact on the economy.

“This is something to celebrate. When you build a road and pass a school with dilapidated classrooms, and you do nothing about it, what are you telling that community? That you are just executing a contract and earning money,”

“But when we go in and patch up the gate, or provide ablutions, which are things I have seen Chinese partners actually enjoy doing, you touch the minds and hearts of our people.” he said

He said the people of Kenya are embracing developments being made by Chinese companies because the impact of their operations in the grassroots has been meaningful. He acknowledged Chinese firms that are putting up health centers and building markets as part of their CSR. Other projects include building access to public amenities, perimeter fences, classrooms, water pans and bus parks, across the country.

He also mentioned Chinese companies that are offering scholarships to Kenyan students both locally and abroad as deserving commendation.

He says the foundation of a partnership that exists between Nairobi and Beijing is mutuality, where China gains and Kenya gains as well.

As a result, he says the two sides have been sharing best practices culturally, socially and economically, and whose impacts have been positive.

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