President William Ruto announced on Tuesday that China has agreed to grant Kenyan agricultural products access to its vast market. This development was revealed after a meeting between President Ruto and his Chinese counterpart, Xi Jinping, held ahead of the ninth Forum on China-Africa Cooperation (FOCAC) Summit in Beijing.
The meeting, conducted at the Great Hall of the People in Beijing, was a pivotal moment for Kenya as it seeks to expand its trade opportunities with the world’s second-largest economy. In a post on X (formerly Twitter), President Ruto expressed his satisfaction with the agreement, noting that it would open up new avenues for Kenyan agricultural products in China.
While specific details about the types of agricultural produce covered by the agreement were not disclosed at press time, this move represents a substantial opportunity for Kenya. In 2023, Kenya’s exports to China were valued at approximately $206.63 million (about Ksh. 26.69 billion). The bulk of these exports consisted of ores, slag, and ash ($110.9 million), with fruits, fish, and coffee also contributing to the total figure.
The announcement comes amid a noticeable decline in Kenya’s avocado exports to China. According to recent data, the volume of avocados exported to China plummeted by 80% from 3,674,463 kilograms to 742,934 kilograms between January and July of this year. This reduction has significantly impacted Kenya’s export earnings from avocados, dropping from $6.83 million (Ksh. 882 million) to $1.23 million (Ksh. 159 million) during the same period. The drop is partly attributed to Kenyan exporters shifting their focus to European and North American markets.
Kenya’s entry into the Chinese avocado market began in August 2022, after China lifted its restrictions on importing fresh fruits, which had previously limited exports to frozen varieties only. The new market access agreement is expected to revitalize Kenya’s avocado exports and other agricultural sectors, offering a critical boost to the country’s economy.
In addition to the agricultural trade agreement, President Ruto’s visit also touched upon infrastructure development. During his meeting with President Xi, discussions included the expansion of the Mombasa-Naivasha Standard Gauge Railway (SGR) line and the Rironi-Mau Summit-Malaba dual carriageway. The expansion of the SGR line is particularly significant, as it aims to extend the railway from Naivasha to the Kenya-Uganda border town of Malaba, a project valued at $3.6 billion.
This infrastructure initiative is a continuation of China’s involvement in Kenya’s development projects, including the SGR and the Nairobi Expressway. In May, the Kenyan government sought over $5.3 billion (approximately Ksh. 720 billion) to connect the SGR line to Malaba, highlighting the importance of regional connectivity. However, previous attempts by President Ruto’s predecessor, Uhuru Kenyatta, to secure funding for this extension were unsuccessful. The Chinese government had previously indicated that Uganda’s participation was crucial for the project’s viability.
The FOCAC Summit, which brings together African heads of state, Chinese leaders, and representatives from the African Union Commission, serves as a platform to enhance China-Africa relations. President Ruto’s visit underscores Kenya’s strategic focus on leveraging its partnerships with China to boost trade and infrastructure development.
As President Ruto continues his engagements in China, the outcomes of these discussions are anticipated to have a lasting impact on Kenya’s agricultural and infrastructural sectors, potentially transforming Kenya’s economic landscape and strengthening its ties with China.
Kenya and India are in advanced talks for a loan facility of Sh32.2 billion (USD 250 million) to enhance trade Read more
Governor Johnson Sakaja recently distributed 1,000 title deeds in a ceremony held at Charter Hall. This event marks another significant Read more
Saudi Arabia's Crown Prince Mohammed bin Salman (MBS) made a strong statement on Wednesday, September 18, 2024, reaffirming that the Read more
Germany’s Economics Minister, Robert Habeck, has called for a political resolution between the European Union (EU) and China. His remarks Read more
Russian President Vladimir Putin has signed a decree extending the country's food embargo on imports from Western nations for an Read more
The Tourism Fund is under fire for accumulating Sh3.4 billion in interest penalties due to delayed payments in the construction Read more