China to fund Kenyan road and rail schemes as it seeks support in opposing Trump tariffs
President Xi Jinping promises to fund a number of projects in a meeting with his Kenyan counterpart William Ruto in Beijing
Chinese President Xi Jinping has agreed to finance the construction of Kenyan roads and railways including the rebuilding of a notorious accident black spot.
The funding he pledged will include work to rebuild the Nithi Bridge in central Kenya, a notorious death trap that has claimed hundreds of lives since its commissioning four decades ago. The plan involves the building of a viaduct that will remove the steep descents and sharp corners that make the bridge so dangerous.
These projects are among 20 deals Kenya secured from China, covering infrastructure, trade, education, and the digital economy.
The two leaders also agreed to upgrade the relationship between their countries to the status of a Comprehensive Strategic Partnership.
The State House in Nairobi said the agreement “cements Kenya’s role as a key Belt and Road Initiative and regional logistics partner”.
Apart from railway projects, China also agreed to allow Kenya to explore the issuing of yuan-denominated panda bonds while Xi pledged to continue talks about a free-trade agreement and to “import more fine Kenyan products and promote the balanced and sustainable development of bilateral trade”.
The Chinese leader also used the meeting to seek support for his opposition to Donald Trump’s tariffs, saying he would defend international trade rules against “unilateralism”.
Xi said that “there are no winners in tariff and trade wars” but China was ready to respond, adding “China does not provoke trouble, but is not afraid of it”, according to a statement from Beijing.
Kenya is facing tariffs of 10 per cent on imports to the US, although Trump has paused the implementation. Meanwhile China is facing much higher tariffs totalling 145 per cent so far this year, bringing the effective tariff rate to about 156 per cent.
According to a fact sheet released by the White House earlier this month, China now faces tariffs of up to 245 per cent, when earlier levies are included.
David Shinn, a China-Africa specialist and professor at George Washington University’s Elliott School of International Affairs, said: “Both countries may see a timely advantage in strengthening ties as they react to Trump’s tariffs.”
Ruto said the trade war had undermined existing international rules, adding: “Kenya appreciates China’s role as a stabiliser in the current turbulent situation, safeguarding the legitimate rights and interests of the Global South. Kenya is willing to work with China to uphold and practise multilateralism.
“We will strengthen cooperation with China to confront our challenges and pursue our shared success.”
Sun Yun, director of the China programme at the Stimson Centre think tank in Washington, said that Ruto’s message clearly catered to Beijing’s vision and desire to rally the Global South in opposition to Trump’s tariffs.
“What he presented in Beijing deeply resonates with the Chinese view of changes in the international order. Kenya apparently wishes to rely on China for its economic engagement,” Sun said.
She added that the much lower tariffs on Kenyan imports compared with those from China “could incentivise transshipment through Kenya”.
Nairobi-based international relations researcher Adhere Cavince said that in the past Ruto had been critical of Beijing, but his visit now suggested a “complete embrace of China” and he would be “quite emboldened” by the infrastructure deals he had secured.
“China-Kenya relations are back on the productive track and the two countries shouldn’t shy away from doing what is right, just and urgent,” he said.