President Uhuru Kenyatta’s visit to Beijing for the 2018 China-Africa summit scored big wins for Kenya with Chinese private investors lining up for public private partnership deals worth billions of Shillings.
The major deals that Chinese private investors want to put their money into include several critical infrastructural projects including a 30 kilometre expressway running from JKIA across the city to Westlands, and for the development of Dongo Kundu industrial Special Economic Zone in Mombasa.
Two major roads in North Eastern will also be constructed through the public private investments. The two roads, Modogashe-Habaswein-Samatar and Elwak-Rhamu road will cost Sh15 billion and would be constructed through partnership involving Chinese private companies under the Kenya government’s roads annuity program..
The new partnerships are seen as a quick result of Kenya’s desire to shift away from pure debt financing with new emphasis being placed on Public Private Partnerships and the need to explore innovative off balance sheet financing for the country’s infrastructure needs.
The revelations came on a day that President Uhuru Kenyatta and his Chinese counterpart, President Xi Jinping witnessed the signing of more deals between Kenya and China. The agreements were signed at the Great Hall of the People where the two leaders held bilateral talks focusing on strengthening the comprehensive and strategic partnership existing between Kenya and China.
The leaders discussed the construction of the Phase 2B of the Standard Gauge Railway covering the section from Naivasha to Kisumu.
During the meeting, the two leaders witnessed the signing of an agreement for funding the construction of the Western Bypass to complete the road network that was designed to ease the city’s perennial traffic problems.
“It is my ambition that we shall continue to strengthen our strategic and comprehensive partnership,” said President Kenyatta. Kenya is satisfied with the tremendous progress achieved in our bilateral cooperation, and continues to open up new areas of cooperation,” said the President.
“My government appreciates your government’s commitment to develop, jointly with our Railway Training Institute, the appropriate vocational and technical skills to ensure optimal management of the rail network on a sustainable basis,” said the President.
Big win for Kenya as Chinese private investors line up for public private partnership deals worth billions of Shillings. It is my ambition that we shall continue to strengthen our strategic and comprehensive partnership. #FOCAC2018 | https://t.co/XmQTiPju0Y pic.twitter.com/qU7ZRaZyoY
— Uhuru Kenyatta (@UKenyatta) September 4, 2018
President Kenyatta was accompanied by Cabinet Secretaries Monica Juma (Foreign Affairs), Henry Rotich (National Treasury), James Macharia (Transport and Infrastructure) and Peter Munya (Trade and Industry).
Principal Secretaries Kamau Thugge (National Treasury), Julius Korir (Infrastructure) and Esther Koimett (Transport).
The President later departed from Beijing on his way back to Kenya.
#China agrees to a Public Private Partnership investment for 30km expressway from JKIA to Westlands & development of Dogo Kundu industrial SEZ in Mombasa. #UhuruInChina pic.twitter.com/T2OLawVZKI
— Robin Njogu (@robinnjogu) September 4, 2018