China gives market access to Kenyan agricultural produce: President Ruto
China has agreed to give market access to Kenya’s
agricultural products, President William Ruto said on Tuesday after a meeting
with his Chinese counterpart Xi Jinping.
Ruto, who is attending the ninth Forum on
China-Africa Cooperation (FOCAC) Summit in Beijing, said the agreement was
reached during a meeting with Jinping ahead of the summit.
“Held talks with President Xi Jinping at
the Great Hall of the People in Beijing, China, ahead of the Forum on China
Africa Cooperation (FOCAC) Summit. During the meeting, President Xi agreed to
give Kenya's agricultural produce access to the Chinese market,” Ruto said in a
post on X.
The presidency had not given further details
about the agricultural produce in discussion or the terms of the pact at press
time.
Kenya exported $206.63
million (Ksh.26.69 billion at current exchange rates) worth of goods to China
in 2023, according to statistics from the United Nations COMTRADE database on
international trade.
A large chunk of this
was ores slag and ash ($110. 9 million); followed by fruits ($25.7 million);
fish ($18 million); then coffee, tea, mate and spices ($9.5 million).
President Ruto’s announcement came amid a
drop in Kenya’s avocado exports to the Asian giant’s market so far this
year as Kenyan exporters focus on the European and North American markets.
The volume of China’s avocado
imports from Kenya dipped by 80 per cent from 3,674,463 to 742,934 kilograms from
January to July, according to Chinese customs data.
This reduced Kenya’s
export earnings from $6,830,140 (Ksh.882 million at
current rates) to $1,232,149 (Ksh.159 million at current rates) during a
similar period last year.
Kenya only started
exporting avocados to China in August 2022. Until then, there was a requirement
that Nairobi only export frozen fruits – not fresh ones – to Beijing, which was
eventually lifted.
On Tuesday, Ruto said the expansion of the Mombasa-Naivasha Standard Gauge Railway (SGR) line
was also mooted during his meeting with Jinping.
“We also agreed to discuss regional
infrastructure projects such as the expansion of SGR, and the Rironi-Mau
Summit-Malaba dual carriageway,” the President wrote on X.
The $3.6 billion SGR is among the infrastructure
projects China has financed in Kenya, as well as the Nairobi Expressway in the
capital.
In May this year, the Kenyan
government announced that it seeks over $5.3 billion (about Ksh.720 billion at
the time) to connect the SGR line from Naivasha to the Kenya-Uganda border town
of Malaba.
Ruto's predecessor, Uhuru Kenyatta, in 2019 failed to secure $3.68 billion to fund the railroad’s
extension to Malaba.
China at the time said Uganda’s involvement was key to connecting South Sudan and Rwanda to Kenya’s
Indian Ocean port city of Mombasa and that without it, the SGR’s viability
would not be feasible.
Kenyatta instead secured
$400 million to upgrade Kenya’s colonial-era metre-gauge-railway to Malaba.
The FOCAC Summit
brings together African Heads of State, Chinese leaders and
the African Union Commission (AUC) to discuss and strengthen China-African
relations.
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