Kenyas trade imbalance with china that is giving Uhuru sleepless nights

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Do you think Access to the Chinese market will have a positive impact on the lives of common people??

President Uhuru has been spending sleepless nights for the sake of the country.

According to the current situation the country is trying  to correct the existing trade imbalance to enable a fairer share of the benefits of trade. Africa welcomes China International Import Expo as an important step towards closing the gap in this imbalance.

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President Uhuru Kenyatta yesterday asked China to give preferential treatment to goods from Africa as it continues opening up its vast market to the rest of the world.

The Head of State urged Chinese President Xi Jinping to put in place measures to proactively raise the volume of goods coming from the African continent to China. He said China can start by reducing tariffs on specific goods so that more traders from countries such as Kenya can access the vast Chinese market of 1.4 billion people.

While acknowledging China’s leading role in the Kenyan economy as a trading partner, the President called for increased Chinese investments in the country.

“China now ranks as the number one trading partner with Kenya accounting for 17.2 per cent of Kenya’s total trade with the World,” Uhuru said when he delivered a keynote address at the inaugural China International Import Expo being held in Shanghai.

Uhuru said Kenya is open and safe for business, adding: “Kenya has one of the most conducive business environments in Africa”. Uhuru also asked China to put in place measures to support Africa to meet sanitary and phytosanitary regulations to facilitate more access for agricultural goods to its market.

President Uhuru with the President of China H.E. Xi Jinping at a stand displaying Kenyan products during the opening of the inaugural China International Import Expo in Shanghai on November 5, 2018. Courtesy

“To facilitate increased exports for African Agricultural products, China may consider providing technical assistance to Sanitary and Phyto Sanitary institutions in Africa to enable them comply with Chinese standards and other international requirements,” said the President.

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Uhuru also urged more Chinese nationals to patronize the rich biodiversity that make Kenya a favorite destination for millions of tourists from around the world.

He invited more Chinese firms, in addition to the 200 already operating in the country, to form joint ventures with Kenyans and to set up more manufacturing bases to create jobs for local citizens.

“We would like to see Chinese firms manufacturing in Africa and exporting to the rest of the world,” he said. Uhuru said he expects the more than 100 traders who accompanied him to the expo to clinch important deals. The traders are mainly from the services, food and agricultural sectors.Image result for ship gif

The President said China is currently Kenya’s largest trading partner with the volume of trade surpassing the $4 billion last year. He said Africa shares China’s vision of shared prosperity and open business.

President Xi said the expo is part of China’s deliberate attempt to share its wealth with the rest of the world through opening access to its vast market. He said China intends to increase the purchasing power of its 1.4 billion people as it increases efforts to open up its market.

Jinping said China will lead the fight for open markets even as some big economies exhibit isolationist and protectionist tendencies. He said China will broaden market access, reduce tariffs for goods entering and increase measures to protect the rights of foreign investors.

According to Kenya National Bureau of Statistics (KNBS), the value of imports from China in 2017 reached Sh390 billion, a 20 per cent jump from Sh337 billion in 2016. This is against the total imports of Sh1.7 trillion during the year. China as a source of imports for Kenya is in comparison to India that stood at Sh170 billion in 2017, a 17 per cent decline from Sh205 billion in 2016. India was the largest exporter to Kenya in 2014.

 

 

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