Kenya-China Trade Ties: KNCCI Roots For Local Resources To Spur Economic Growth

• Kenya is hosting the 7th Kenya International Industrial Expo that kicked off at Sarit Centre, Westlands, Nairobi
• The three-day exhibition attracted participants from all over the world, including China and other Asian countries
• Kenya National Chamber of Commerce and Industry (KNCCI) members advocated for local exports to China to strengthen trade ties

It has emerged that Kenya can close the trade gap with China by utilising its domestic resources to support the expansion of its manufacturing sector.

Speaking at the 7th Kenya International Industrial Expo's opening ceremony, the Kenya National Chamber of Commerce and Industry (KNCCI) representatives stated that growing its exports to the Asian country is the answer.

Kenya's exports to China

As of 2023, China is Kenya's largest import supplier, with exports estimated to be valued at KSh 1.03 trillion. Kenya, on the other hand, exported KSh 35.4 worth of goods to China.

“We are only depending on the products which are coming from China, but we can also as well manufacture products which we can export to China or even do an exchange of things like coffee, tea among others like artefacts which we can also export there,” said Kennedy Onditi, national director at KNCCI.

Onditi, who represented Eric Rutto, KNCCI president, announced that 12 members showcase crafts, industrial products, electronics, machinery, logistics, and financial services, among other sectors.

“For 14 consecutive years, China has held the position of Africa’s largest trading partner, serving as the primary destination for African exports.

"KNCCI has an overseas branch in Hunan province, China, that has facilitated trade between the two countries, amounting to over KSh300 million in the past ten months, spanning various sectors, including leather and crafts, skincare and avocado oil, coffee, speciality tea, and macadamia kernels. Kenyan companies are poised to establish their presence in the China (Hunan) Free Trade Zone,” Onditi stated.

On his part, Ronald Meru, the economic diplomacy chairman of KNNCI, said:

“These are the things that we need to explore. We want to see what we can get regarding knowledge transfer based on economic transformation agenda.”

Why Kenya International Industrial Expo?

The three-day expo serves as a platform for showcasing industrial innovations, fostering relationships, and exploring new opportunities.

The exhibition at Nairobi's Sarit Centre brings together over 200 exhibitors from China to display a wide range of products, including farm gear, automobile parts, renewable energy solutions, leather goods, and electrical devices.

Afripeak Expo Kenya Limited is the organisation behind the event, the KNCCI, a business lobby, and the Kenya Investment Authority (KenInvest).

According to Gao Wei, managing director of Afripeak Expo Kenya Limited, this year's expo aims to increase commerce and the flow of innovations needed to make local firms more competitive and advance industrial collaboration between Kenya and China.

Gao said that Kenyan manufacturing companies would have the chance to exhibit their goods to foreign buyers at the expo as they look for joint ventures with their Chinese counterparts to promote expansion.

“We have been engaging in the manufacturing sector and Industrialisation. So, the companies coming are from the manufacturing and agricultural sectors,” Gao said.

Which stakeholders are attending industrial expo?

Since its launch in 2018, the exhibition has enabled technology transfer, created joint ventures for product development, and opened up trade and investment opportunities between China and Kenya.

Over 500 exhibitors from China and other Asian countries have participated in the three-day expo. Chinese and Kenyan investors will discuss joint ventures in the digital economy, renewable energy, construction, and agro-processing.

This year’s theme, Driving Growth in Kenya’s Manufacturing Sector through Technology, aligns with the government’s agenda of boosting industrialisation for job creation.

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