President William Ruto departs for Beijing tonight, April 21, 2025, kicking off a five-day state visit focused on reshaping Kenya’s approach to funding major infrastructure projects through enhanced cooperation with China.
Ahead of the trip, Foreign Affairs Principal Secretary Korir Sing’oei said Kenya is seeking to move away from conventional loan agreements and explore more sustainable financing models, such as public-private partnerships (PPPs). This shift comes amid economic challenges including a volatile shilling, rising interest rates, and increasing debt servicing costs.
“We are proposing a financial approach that avoids the traditional loan structure,” Sing’oei said during an interview in Beijing ahead of the president’s arrival. “That conversation is ongoing, and it’s very important to us.”
He emphasized the need to find creative financing solutions to avoid placing further strain on taxpayers, noting Kenya’s constrained ability to take on new debt.
A key project expected to be discussed is the extension of the Standard Gauge Railway (SGR) to Malaba. Sing’oei noted that once operational, the railway is projected to generate sufficient revenue to pay back its construction costs.
To unlock funding for current and future infrastructure plans, Kenya is also considering new ways to leverage existing mechanisms like the Railway Development Fund, potentially through securitisation.
On whether China will require sovereign guarantees for new projects, Sing’oei said Beijing remains open to flexible financing arrangements, as long as they are sustainable and beneficial for both countries.
“We’re aware of our fiscal limitations and are working to find innovative ways to drive our infrastructure agenda forward,” he said.
During the visit, President Ruto is expected to witness the signing of several key agreements, including the Nairobi Integrated Transport System—under discussion for three years—as well as deals supporting Technical and Vocational Education and Training (TVETs), focusing on skills development and equipment provision.
Other anticipated announcements include Chinese grants for healthcare projects like the planned hospital in Londiani, Kericho County, along with broader frameworks for future cooperation in multiple sectors.
Although financial matters are central to the visit, Sing’oei clarified that President Ruto will not take part in technical negotiations, which are being handled by the National Treasury in conjunction with Chinese counterparts.
