- President William Ruto on Wednesday wrapped up his three-day tour of China, his first since assuming office, with a passionate call to investors from the Asian powerhouse to set up shop in Kenya.
- The President floated proposals for investments in the renewable energy and ICT sectors, narrowing down to manufacture of electric cars, construction of data centres, and digitization of government services.
Image: PCS
President William Ruto on Wednesday wrapped up his three-day tour of China, his first since assuming office, with a passionate call to investors from the Asian powerhouse to set up shop in Kenya.
The President floated proposals for investments in the renewable energy and ICT sectors, narrowing down to manufacture of electric cars, construction of data centres, and digitisation of government services.
Ruto, in a speech at the Belt and Road Forum on International Cooperation, positioned Kenya as the gateway to Africa, saying it is the landing site of six fibre optic cables connecting various African states.
“Kenya remains open for trade and investment, and is committed to becoming a globally competitive player in digital economy. This aspiration naturally implies numerous opportunities for smart investors and proactive development partners,” the President said.
Ruto said the country has proved its mettle on matters digital economy, having pioneered the first mobile telephony payment system -M-Pesa- in Africa.
“We never tire in proclaiming that Kenya pioneered the era of mobile payment and mobile money. We have fully integrated this mobile digital payment system into our economy. Payment for goods and services both from public and private providers is now primarily mobile and digital, proudly powered by Chinese companies,” he said.
The President further called on investments towards setting up 25,000 digital villages as outlined in the Kenya Kwanza’s Bottom Up Economic Transformation Agenda (BETA), further highlighting that the government has made digital economy as part of the education curriculum.
“I stand before you to make a strong call that this forum resolve to commit greater investment to Africa’s infrastructure development generally, and intensify investment in the growth of the digital economy throughout the continent,” the President said.
Ruto positioned Kenya as the gate to Africa, marketing it as the landing site for six undersea fibre optic cables.
“It is also advantageously located multinational, continental and regional logistical, humanitarian, commercial, trade and investment destination.”
President Ruto, who was among key leaders who attended the opening ceremony of the big infrastructure meet hosted by China’s Xi Jinping and graced by Russia’s Vladimir Putin, also said Kenya is a perfect gateway to East Africa, Comesa, and AfCTFA.
The President held bilateral talks with his counterpart after the opening ceremony.
"The Chinese and Kenyans both find our cooperation rewarding. We will work with Kenya for an even more robust comprehensive strategic cooperative partnership," China government spokesperson Hua Chunying said after the talks.
State House was yet to give a brief detailing the agreements reached during the talks.
“Kenya is also a warm, welcoming home of hard-working enterprising people. I invite you to bring your investments through Kenya, the ultimate gateway to Africa’s 1.4 billion people, majority of whom are young men and women,” President Ruto said before the talks.
Several African leaders including Ethiopia’s Premier Abiy Ahmed and Congo’s Dennis Sassou N’guesso also attended the third Belt and Road Forum in Beijing, China.
On green energy, the President said the country would offer a market as well as incentives for investors.
“We have opened doors for firms manufacturing e-mobility vehicles and assure them that the government would be the first to buy the products,” he said.
Earlier, President Xi Jinping outlined eight major steps China will take "to support high-quality cooperation" under the BRI engagements.
He cited road connection network, inter-transportation cooperation forum, supporting world open economy and e-commerce with more countries.
Xi further named the removal of restrictions on foreign manufacture, high standard cross-border trade, integration of ports, shipping and trading, and expansion of digital reforms.
"My country will promote green development energy and transportation besides implementing training opportunities for partner countries," Xi said, pledging more financing for Belt and Road projects.
In his tour, President Ruto signed a number of memoranda of understanding key among them with China Engineering Corporation Limited – Energy China, and Huawei as initial steps to realising the investment dreams.
On this, President Ruto called for investments in data centres and to help speed up digitisation of government services under the eCitizen platform.
“Digital superhighway which is one of the five pillars is one of the areas that will be of priority that Huawei will work with us to deliver
Development of ICT hubs will help build knowledge and talent among our youths to make them job-ready,” he said.
Ruto also championed the extension of the standard gauge railway from Naivasha to Malaba, indicating that Uganda, Democratic Republic of Congo, and Congo Brazzaville have agreed on the same.
“We have agreed on the need to extend this piece of infrastructure as a means of facilitating trade across our continent and making sure that companies who set up in Kenya have access to the region’s market,” the President said in a high-level meeting with investors.
“We have made the decision that this is the way to go. As we look at the 1.4 billion people in China, we have to look at the 1.4 billion people in Africa,” Ruto said, marketing Kenya as a destination for green manufacturing.
He called for partnerships “to make it possible for companies like Safaricom and Konza Technopolis” to thrive.
Already, 11 Chinese companies have established enterprises in the technology park, injecting more than $160 million.
The President also pitched for investments in the e-commerce as well as fintech sectors, saying progress has been made on the same under the Hustler Fund.
“I am happy that the Hustler Fund has benefited from this cooperation and other fintechs that are working in making sure Kenya is financed and providing access to many Kenyans in the space of SMEs.”
This was even as investors decried the tough economic environment citing challenges with cost of doing business and securing markets for the products.
In an earlier forum, Chen Congcong, the chairman Kenya China Chamber of Commerce, said they were concerned about the trade imbalance caused by these challenges.
“As a chamber, we have noticed the several challenges. Getting markets. The cost of marketing in Kenya is very high…this is making it a challenge to convince investors to put up businesses in Kenya and manufacture for Africa,” he said.
Congcong, said they hope an MoU signed with their counterparts would solve the challenges, vouched for “a common market platform”.
“We have factories that make mobile phones in Kenya, phone chargers, cables and covers. If for them to do marketing for own products, it will be expensive.”
“If we can build a platform for people to come to the same point and pick everything it would be easier and also for them to get more orders to produce in Kenya,” he said.
The chamber further announced that it had opened three national pavilions for Kenya products in Xian, Guangzhou, and Senzhen.
“Kenya products not opened in Chinese market yet. The national pavilions will promote Kenya products – tea, coffee, and macadamia. These will open the market for Kenya products and also promote tourism and investment opportunities,” he said.