Kenya Signs Trade Agreements with China; Commits to Deepen Trade Relations 

Kenya Signs Trade Agreements with China; Commits to Deepen Trade Relations

President Uhuru Kenyatta and Chinese Foreign Minister Wang Yi during the inspection of the KShs 40 billion offshore Kipevu Oil Terminal in Mombasa. Jan 6, 2022·

Kenya has signed six trade agreements with China with a commitment to deepen bilateral relations and cooperation.

“The six trade agreements signed on Thursday between Kenya and China will improve trade and deepen relations and collaboration between our two countries. Kenya seeks to increase agricultural exports to China to address the trade imbalance between the two countries,” Kenya’s Foreign Affairs Cabinet Secretary Raychelle Omamo said. 

“The establishment of a working group to look into the issues of tariff and Non-Trade Barriers will see the two countries increase intra-trade.”

She spoke during a bilateral meeting with China’s Foreign Minister Wang Yi in Mombasa.

Omamo noted that under the framework of the Forum on China-Africa Cooperation (FOCAC) and the Belt and Road initiative, development cooperation between Kenya and China have continued to grow.

On his part, the Chinese minister said “Our commitment is to be Africa’s good friend and partner. Our bilateral relationship has become a fine example of solidarity, cooperation and common development between China and Africa. We will continue to support each other.”

The agreements involve collaboration on Information Communication and Technology (ICT) to boost the digital economy in Kenya, the development of regional transport for the economic hub on Belt and Road Initiative (BRI) and creating a market of Kenyan agricultural products.

Importance of bilateral ties

President Uhuru Kenyatta also underscored the country’s relationship with China describing it as a partnership of friends working together to achieve economic growth.

“It is not a partnership based on China telling us what we need. It is a partnership of friends working together to meet Kenya’s social-economic agenda. China has been that one friend who is always there when we ask for partnerships to help us achieve what we require. They walk with us hand in hand,” Kenyatta said after inspecting the KShs 40 billion offshore Kipevu Oil Terminal in Mombasa.

“It is a partnership of friends working together to meet Kenya’s social-economic agenda. China has been that one friend who is always there when we ask for partnerships to help us achieve what we require. They walk with us hand in hand,” Kenyatta said.

 

When operational, President Kenyatta noted that the offshore jetty will save the country in excess of KShs 2 billion annually in demurrage costs incurred by oil shippers thereby contributing to a significant reduction in fuel pump prices. 

The 770m jetty is, fully funded by the Kenya Ports Authority (KPA) with a capacity to load and offload very large vessels of up to 200,000 DWT carrying all categories of petroleum products including crude oil, white oils and LPG.