Kenya has stepped up discussions with China on infrastructure financing and the implementation of major development projects, including the extension of the Standard Gauge Railway (SGR) to Malaba.
National Treasury Principal Secretary Dr Chris Kiptoo said Kenya remains committed to deepening its longstanding economic partnership with China following a meeting with Chinese Vice Minister of Finance Liao Min in Beijing.
Kiptoo said the discussions focused on accelerating ongoing cooperation in transport, water and technical training, while also advancing plans for the proposed Panda Bond.
The talks come as Kenya seeks to diversify sources of financing for major infrastructure projects. The government has in recent days held discussions with Chinese financial institutions on additional funding for infrastructure and economic development.
“Kenya values its strong and longstanding partnership with the People’s Republic of China and its continued support for our socio-economic development,”he said.
A key issue in the latest engagement is the completion of the SGR extension from Naivasha to Malaba, which would provide onward rail connectivity to Uganda.
Kenya has previously indicated that it intends to pursue a hybrid financing model for the Naivasha-Malaba railway extension, with Chinese financing and other sources expected to contribute to the project.
Kiptoo said the government was also advancing the Panda Bond initiative as part of efforts to access China’s capital markets. The proposed bond is expected to provide Kenya with another avenue for raising funds for development projects.
Recent government engagements have placed the proposed Panda Bond at about KSh64 billion, with officials saying it would help diversify Kenya’s development financing sources.
The Treasury has also been engaging the China Development Bank over additional financing for infrastructure projects, with discussions covering transport, water, digital development, manufacturing and other areas.
Beyond financing, Kenya and China are also seeking to accelerate cooperation in water projects and technical training, according to Kiptoo.
The latest discussions form part of broader efforts by Nairobi to deepen its economic relationship with Beijing through the Forum on China-Africa Cooperation (FOCAC) and the Comprehensive Strategic Cooperative Partnership.
China remains an important development partner for Kenya, particularly in infrastructure financing and construction. The government’s latest engagements come as it explores multiple financing options for major projects amid growing demand for infrastructure investment.
