Passengers at the Nairobi SGR Terminus

List Of Multibillion Projects Funded By China In Kenya

Passengers at the Nairobi SGR Terminus

  • China has funded several projects running into billions of shillings in Kenya during the past two decades
  • Kenya's relations with China consistently improved as part of its "Look East" policy under the administrations of Mwai Kibaki (2002–2013) and Uhuru Kenyatta (2013- 2022)
  • National Assembly Speaker Moses Wetang'ula said there has been a remarkable increase in bilateral contacts since the beginning of the 21st century

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TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

In the last two decades, China has funded several projects in Kenya, running into billions of shillings.

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Kenya's relations with China consistently improved as part of its "Look East" policy under the administrations of Mwai Kibaki (2002–2013) and Uhuru Kenyatta (2013- 2022).

In October 2023, President William Ruto attended the third Belt and Road Forum for International Cooperation in China. He is expected to grace the ninth Forum on China-Africa Cooperation (FOCAC) later in September.

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Moses Wetang'ula speaks on Kenya-China relations

National Assembly Speaker Moses Wetang'ula said there has been a remarkable increase in bilateral contacts since the beginning of the 21st century, which has helped Kenya's economy flourish and benefited its citizens.

Wetang'ula said most of Kenya's significant infrastructure projects had China's stamp.

"When you look today, China is a signature to almost every major infrastructure project in Kenya, and the people of Kenya appreciate this. The relationship between Kenya and China is excellent.
"Look at the Nairobi-Thika Superhighway, the best highway we have in the country. Look at roads, even in the most unexpected rural areas, that are being constructed by Chinese companies. Look at water, dams, last-mile connectivity and electricity, and the construction of institutions and universities," China Daily quoted Wetang'ula.

FX Pesa market analyst Rufas Kamau said Kenya enters into bilateral agreements with foreign nations to boost trade and forex reserves.

"It's in the interest of the Kenyan government to enter bilateral deals with our top trade partners to ease the pressure on foreign currency reserves," he told TUKO.co.ke.

Which multi-billion projects were funded by China?

1. Nairobi Expressway

The 27km Nairobi Expressway was built by Chinese contractor Moja Expressway Company at KSh 88 billion.

Nairobi Expressway was conducted through a public-private partnership (PPP) model, and the contractor recoups the money from toll fees.

Transport Cabinet Secretary (CS) Kipchumba Murkomen emphasised the Nairobi Expressway's positive impact as a testament to the success of PPPs.

He noted that the expressway had significantly reduced travel time from Jomo Kenyatta International Airport to Nairobi's central business district from two hours to 20 minutes.

2. Thika Superhighway

Thika Superhighway is an eight-lane controlled-access highway with up to twelve lanes in certain places.

It connects Thika, an industrial town, to Nairobi, the country's capital. According to AfriCog, it cost KSh 32 billion to construct.

The Exim Bank of China funded the multi-billion project to the tune of $100 million (KSh 13.2 billion), the African Development Bank $180 million (KSh 23.8 billion) and the Kenyan government $80 million (KSh 10.5 billion).

3. Standard Gauge Railway (SGR)

The first phase of the Standard Gauge Railway (SGR) between Mombasa and Nairobi was completed in 2017.

When it was launched, the SGR was one of Kenya's most costly infrastructure projects, costing $3.6 billion (KSh 475.2 billion).

According to Africa-China Centre for Policy and Advisory, China funded 90% of the project.

The SGR was built and operated by China Road and Bridge Corporation (CRBC), a subsidiary of China Communications Construction Company.

4. Lamu Port-South Sudan-Ethiopia Transport (LAPSSET)

LAPSSET was established through a presidential order in 2013. It is one of Kenya's Vision 2030 projects.

The Lamu port's first phase is finished and contains facilities for exporting livestock.

Isiolo-Moyale highway is currently in use, while the Lamu-Garissa highway is under construction.

The cost of the planned LAPSSET railway that will run from Lamu Port to Ethiopia was estimated at KSh 2.4 trillion.

Who will construct the Nairobi-Mombasa Expressway?

In related news, Kenya entered a deal with a US company to construct the 440km highway from Nairobi to Mombasa. The project aims to open up the region and ease transport between Nairobi and the coast.

Usahihi Highway, as it is christened, will be the second toll road after the KSh 88 billion Nairobi Expressway, which was constructed during Uhuru Kenyatta's tenure.

The Nairobi-Mombasa toll road is estimated to cost $3.6 billion (KSh 478.4 billion).

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke

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Passengers at the Nairobi SGR Terminus
Passengers at the Nairobi SGR Terminus
List of Multibillion Projects Funded by China in Kenya - Tuko.co.ke
List of Multibillion Projects Funded by China in Kenya - Tuko.co.ke
List of Multibillion Projects Funded by China in Kenya - Tuko.co.ke
List of Multibillion Projects Funded by China in Kenya - Tuko.co.ke