President Ruto Makes His Debut Trip to China

President William Ruto has embarked on his initial official trip to China, where he will attend the Belt and Road Initiative forum. This visit will test his pragmatism in foreign policy and provide a platform to showcase his much-publicized Bottom-Up economic model. The BRI, initiated by Chinese President Xi Jinping over a decade ago, aims to enhance China’s global trade and access to raw materials through infrastructure development. Kenya, along with 46 other African countries, joined the BRI, resulting in significant debt accumulation from China-funded projects such as roads, the Standard Gauge Railway, and the Lamu Port.

Despite President Ruto’s previous statements about avoiding excessive debt, the government recognizes the need for funds to implement economic policies and sustain operations. In pursuit of open borders, increased trade, and regional infrastructure development, Nairobi is keen on engaging with China. Transport Cabinet Secretary Kipchumba Murkomen recently held discussions in China, exploring alternative funding models such as public-private partnerships. The successful implementation of the Expressway project, which utilizes PPP, has further incentivized President Ruto to sign a law that encourages more Chinese investments in PPP-style projects and adjusts debt ceiling calculations. The law aims to gradually reduce public debt to sustainable levels within five years.

Through PPP, the government can collaborate with contractors who secure funding for project development and recoup the investment through user fees. 

For example, the China Road and Bridge Corporation developed the Nairobi Expressway and charges motorists a specific tariff for its usage. The government is also considering PPP for other projects, including the Nakuru Mau Summit highway, which will eventually link to the Malaba highway, and the extension of the Standard Gauge Railway to Malaba. In August, Kenya and Uganda signed a memorandum of understanding to jointly seek funding for the SGR extension.

President Ruto’s visit to China and his engagement with President Xi Jinping at the BRI forum will be crucial for strengthening bilateral ties and exploring opportunities for economic development. The government’s focus on PPP-style projects demonstrates its commitment to infrastructure development while managing debt and bolstering long-term growth prospects.