By Aoma Keziah,
Industry Principal Secretary Dr. Juma Mukhwana, has called on Chinese investors to grow their investment in Kenya as a way of strengthening the economic ties that exist between the two countries, during the Kenya-China (Shenzhen) Economic and Trade Exchange and City Branding Conference in Nairobi,
He highlighted the need for Kenyan investors to also take advantage of the recently signed China- Kenya trade and economic agreements, as well as the removal of tariffs on Kenyan exports to China, to grow Kenya’s export portfolio.
“Kenya being a strategic gateway to Africa, presented a number of opportunities for manufacturing, agro- processing and cultural tourism and technological innovations.
The Principal Secretary further invited the Chinese investors to take advantage of government allocated land for County Aggregation and Industrial Parks (CAIPs) across counties.
“We want Shenzhen based companies to build, operate, and eventually transfer these facilities to Kenyans, through industrial partnership,” remarked Dr. Mukhwana.
Kenya’s emerging manufacturing zones, ranging from Export Processing Zones (EPZs) in Athi River to Special Economic Zones (SEZs) in Dongo Kundu, Eldoret and Naivasha, are set to benefit from such collaborations, especially as the country seeks to raise its manufacturing contribution to GDP from 7.6% to 20% by 2030.
At the conference, Kenya and China’s tech-driven city of Shenzhen led by the President of the Shenzhen Overseas Friendship Association Mr. Wang Qiang, pledged to strengthen economic ties and deepen trade collaboration in a bid to accelerate industrial growth, regional trade, and sustainable development.
Shenzhen which is China’s innovation powerhouse and home to global tech giants like Huawei, ZTE, Tencent, and BYD, is now looking to expand its investment footprint in Africa, starting with Kenya. “ We believe partnering with Kenya’s private sector can bring mutual value and innovation, also, investing in Shenzhen is investing in the future and expanding investment in the world. We invite people of all walks of life, to come live, study and invest in the city of Shenzhen,” noted Mr. Qiang.
Chinese firms, particularly from Shenzhen, expressed strong interest in sectors such as agro-processing, electric mobility, electronics assembly, pharmaceuticals, and construction materials.
President of the Shenzhen General Chamber of Commerce, Mr. Wan Chan, highlighted how Shenzhen’s transformation from a fishing village to a global tech and industrial hub can offer critical lessons for Kenya, which is currently developing CAIPs to spur local manufacturing.
The two sides discussed opportunities for setting up assembly plants for agricultural machinery, automobiles, that are highly demanded in Kenya and across the region. The forum also highlighted the increasing focus on the pharmaceutical sector, where local production of products such as syringes and drugs was seen as essential to improving healthcare access.
Kenya’s tourism sector, which welcomed over 91,000 Chinese visitors last year, was also an area of interest for investment, especially in hotel development and eco-tourism infrastructure, as Kenya focused on growing the number to a million, over the next decade.
China’s exports to Kenya hit approximately $ 8.58 billion in 2024, against Kenya’s average of $24.257 million. Recent moves to remove a longstanding 10% export tariff on Kenyan goods to China were praised by business leaders as a significant step forward.
“We are no longer just looking for imports, but inviting investment in production. Chinese businesses that manufacture in Kenya will gain access to regional markets, tax holidays, and preferential trade agreements with the United Kingdom, United Arab Emirates, Africa itself and the US- Kenya Economic partnership whose negotiations are at the tail end,” continued to say PS Mukhwana.
Kenya also boasts a youthful, tech-savvy population, offering a ready labour force and growing consumer market. With Shenzhen companies contributing over $708 million in imports to Kenya in 2023, the potential for balancing trade through joint ventures and local manufacturing is now a top priority.
Minister-Counsellor at the Chinese Embassy in Kenya Mr. Zhou Zhencheng, emphasized Shenzhen city’s unmatched business ecosystem, with over 4 million commercial entities and 579 listed companies, including 10 Fortune Global 500 firms. Its industrial capacity, innovation prowess and logistical efficiency make it a key partner for any country looking to scale up industrialization.
“With shared values of innovation, inclusivity, and sustainable growth, the Kenya-Shenzhen partnership is emerging as a blueprint for economic transformation across the continent,” added the Mr. Zhuo Wu, President of the Kenya Chinese Chamber of Commerce.
As 16 Chinese companies from Shenzhen tour Kenya seeking opportunities in manufacturing, cultural tourism, logistics, and technology, both sides are optimistic about a new era of cooperation.
