CHINESE INVOLVEMENT WITH KENYA
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CHINESE INVOLVEMENT WITH KENYA
Over the recent few years, China has been reaching out to most African countries to secure economic ties. Kenya, just like the other sub- Saharan countries like Angola and Ethiopia played into China’s court. For instance, Kenya has been receiving bilateral aids from China in the form of loans, technical assistance in the form of military training, goods, and services. Such ties have been instrumental in so many ways in as much as the recipient countries are concerned. The construction of the Standard Gauge Railway and other infrastructure, for example, have opened up inaccessible areas and eased transportation. Such aids have also led to increased Gross Domestic Product due to a boost in the economy. Nonetheless, the involvement has had much more cons than pros.
Kenya, for instance, suffers a massive debt to China, with an approximate value of sh.900 billion. (Were, 2001). This, coupled with stringent restrictions which China attaches on its aids does the country more harm than good. The country, therefore, is forced to overwhelmingly depend on China since most of the restrictions require her to buy back goods and services from the donor country at an exaggerated price. (Knack, 1999) For example, most of the construction of the SGR, not to mention the purchase of the construction materials was conducted by the Chinese. This takes a toll on the Kenyan citizens as the rate of unemployment remains afloat.
China is also working in a bid to flood Kenya’s capital with its citizens who have embarked on offering cheap services and goods at the expense of Kenya’s unemployed youths (Gadzala, 2009) Stroll about the streets of Nairobi and you will not be surprised to meet Chinese citizens hawking. Such competition with Kenyan citizens over small trades is simply an implication that China is bent on exploiting Kenya’s economic potential to the full effect.
Kenya has got a lot of potential in as far as manufacturing commodities like razor blades are concerned. However, most of these commodities are currently being imported from China. (MacRae, 1979) The country risks going to an extent of importing timber, if it has not begun yet. Such measures could be emanating from China imposing both economic and political pressure on Kenya to reciprocate the favour. Kenya, being left without a choice, may be forced to comply since it is heavily indebted. This leaves Kenya’s potential a dream that may never be realized.
Most of the loans from China has so far encouraged the Kenyan government to embark on ambitious plans like the expensive construction of the SGR which overlooks the basic projects that could have help[ed the poor citizens in a much better position. (Kamakia, Guoqing, Zaman, 2018) The poor citizens, especially in the rural areas who may not be able to access such services yet they, continue to pay taxes suffer the more.
In as much as the development projects brought about by the Chinese government to Kenya may lead to immense progress in the country, such developments cause inflation which increases prices of commodities. The poor citizens who are overlooked thus feel deprived of as the progress seems to serve the upper classes of citizens.
Some aids from China are pumped into policies which incur heavy losses. Some aids may also instigate corruption as most funds may be pocketed by corrupt leaders. This takes a toll on the poor citizens who will end up paying huge taxes to foot out the debt.
From the above illustrations, it is evident that the aids from China have more disadvantageous than the advantages.
References
Gadzala, A. (2009). Survival of the fittest? Kenya’s jua kali and Chinese businesses. Journal of Eastern African Studies, 3(2), 202–220.
Kamakia, A., Guoqing, S., Zaman, M., & Junbi, Z. (2018). Financing for Development and Socio-Ecological Transitions: A Review of Chinese Investments in Kenya. Environmental Management and Sustainable Development, 7(2), 34–54.
Knack, S. (1999). Aid dependence and the quality of governance: a cross-country empirical analysis. The World Bank.
MacRae, D. S. (1979). The Import-Licensing System in Kenya. The Journal of Modern African Studies, 17(1), 29–46.
Were, M. (2001). The impact of external debt on economic growth in Kenya: An empirical assessment. WIDER Discussion Papers//World Institute for Development Economics (UNU-WIDER).