Ruto In China: What Kenyans Should Know About President's Visit To Beijing, Including New Loans

• Chinese Loan to Africa (CLA) Database 2021 brief indicated that Kenya last received funding from Beijing in 2019
• China reduced its funding to African countries, including Kenya the period starting 2019, 30% down from the 2018 disbursement
• President William Ruto's visit to the Asian country is expected to unlock funding towards major infrastructure projects in the country

TUKO.co.ke journalist Wycliffe Musalia has over five years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.

President William Ruto is in China for a three-day Forum on China-Africa Cooperation (FOCAC) summit, which kicks off on Wednesday, September 4.

Why Ruto travelled to China

Speaking in Siaya on Friday, August 30, Ruto revealed that the purpose of his tour to the Asian country was to sign multi-billion shilling deals.

The head of state was honoured to co-chair the Road and Belt Initiative session.

After his arrival on Monday, Ruto met with President Xi Jinping and other Chinese officials on Tuesday, September 3.

Ruto hinted that the Asian country would fund the Rironi-Mau Summit-Malaba dual carriage and the Standard Gauge Railway (SGR) extension to Western Kenya.

Which projects does Ruto want China to fund

The projects to be funded following this discussion include:

• SGR phases 2B and 2C (Naivasha-Kisumu-Malaba)
• dualling of the Nairobi Northern Bypass
• construction of Rironi-Mau Summit-Malaba dual carriage
• establishing a pharmaceutical park,
• Preferential Trade Agreement (PTA)
• Investment Protection Agreement (IPA).

China and Kenya bilateral trade volumes exceeded $8 billion (KSh. 1.04 trillion) between 2022 and 2023.

Ruto’s visit is expected to strengthen joint efforts to diversify projects in agriculture, food security, creative economy, e-commerce, manufacturing, health, environmental conservation, and financial services.

When was the last time China loaned Kenya?

According to the Chinese Loan to Africa (CLA) Database 2021 brief, Kenya last received funding from Beijing in 2019.

China reduced its funding to African countries, including Kenya the period starting 2019, 30% down from the 2018 disbursement.

"Kenya received $265 million (KSh 34.1 billion) from China during the year, after committing to borrow an average of approximately $1 billion (KSh 128.7 billion) per year each between 2010 and 2018," read the brief in part.

Between 2010 and 2018, Kenya signed US$ 8.3 billion (KSh 1.1 trillion), which is $920 million (KSh 118.4 billion) average per year commitment with Beijing.

Ruto's govt borrows KSh 40 billion from China

Ruto's administration borrowed KSh 40 billion from China to revive stalled projects countrywide amid taxpayer concerns that many projects had been put on hold.

The funds are expected to fund road projects in 15 counties and are expected to spill over to other counties where the roads stretch.

Some of the stalled road projects in the country include the 64.5-kilometer Metembe-Owalo-Rioma-Marani-Ng'enyi/Ting'a-Bobaracho-Ragogo-Kegogi-Nyakoora-Rioma-Gesieka-Nyaore-Mararo road.

The 75.92-kilometer Kaiboi-Kapkatembu-Kipkaren Selia-Kaiboi road in Nandi, Maili Nne-Tuiyo, and Soko-Tuiyo-Aturei roads.

The list also includes the 43-kilometre Barpelo-Tot-Marich Pass route, at Ksh 15 billion, which links the counties of Baringo, Elgeyo Marakwet, and West Pokot.

What to know about China loans to Kenya

• Kenyan taxpayers paid KSh 107.42 billion China loan in 2022/23 compared to KSh 73.48 billion in the previous year, showing a 46.19% growth in repayment.
• Repayments for outstanding Chinese loans surged to a record-high of KSh. 72.07 billion, notably more than double over three months.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.

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Ruto said he travelled to China to sign multi-billion shilling deals.

Xi Jinping Meets with Kenyan President William Ruto--The Third Belt and

Beijing, China. 15th Oct, 2023. Kenyan President William Ruto arrives