China to fund Kenya's new diplomatic hub in Nairobi

Kenya is preparing to sign a key agreement with China this week to construct a new Ministry of Foreign Affairs headquarters in Nairobi.

The project is one of several high-level deals expected to be sealed during President William Ruto’s official state visit to Beijing.

Foreign Affairs Principal Secretary Korir Sing’Oei confirmed the agreement on Monday, describing it as a major step toward enhancing diplomatic cooperation between the two countries.

"That is a conversation we will have before we do the groundbreaking," said Sing’Oei.

"At this point in time, it is undergoing a feasibility study."

The proposed headquarters, first introduced nearly four years ago, will be partly financed by China through grants.

While the exact cost has not been disclosed, the project is a priority in Kenya’s plan to expand and modernize its diplomatic operations.

The new facility is expected to offer more space and improved amenities compared to the ministry’s current offices on Harambee Avenue, which have been deemed inadequate for the growing scope of Kenya’s foreign policy agenda.

A Chinese technical team visited Nairobi in May 2024 to begin work on the design, setting the stage for construction to begin once the final plans are approved.

The agreement comes as China marks 60 years of diplomatic relations with Kenya.

Although the two countries first established ties in 1963, those relations were briefly halted in 1967 before being re-established in 1978.

According to Sing’Oei, the agreement goes beyond infrastructure. He said the visit aims to deepen the long-standing relationship and build stronger economic and strategic ties.

"It is about developing an understanding of where we are and where we want to be as two friendly nations," he said.

President Ruto is being accompanied by several Cabinet Secretaries, and the visit includes business forums, high-level government meetings, and a keynote speech at Peking University.

Ruto is expected to highlight Africa’s shared goals in inclusive growth and stronger South-South partnerships.

Among the other deals to be signed is an agreement for the construction of two county referral hospitals, showing a broad focus on health and infrastructure development during the trip.

On the economic front, Kenya is actively encouraging Chinese investment.

Sing’Oei reassured investors of Kenya’s transparent and fair approach to awarding contracts and outlined a range of incentives offered to all foreign investors.

"These incentives are open to all investors, including our Chinese counterparts, as we seek to build a secure and attractive investment climate," he said.

He cited strong protections for investment, a legal system capable of resolving disputes, and fair banking regulations that allow investors to repatriate profits with ease.

Another important event during the visit is the planned launch of the Kenya Tea Holding Centre in Fujian Province.

The center will promote Kenyan tea in China, help small-scale farmers, and grow Kenya’s agricultural trade in Asia.

"Situated in one of China’s key tea regions, the centre will enhance the visibility and market access of Kenyan tea, support smallholder farmers, and strengthen Kenya’s trade footprint in Asia," the State House said.

China’s Foreign Ministry Director General for Africa, Du Xiaohui, also pointed out that Kenya is among the first African countries to benefit from China’s Green Channel for agro-products, allowing quicker access to Chinese markets for Kenyan goods.

"Kenyan flowers, avocados, omenas are increasingly available in Chinese market. In 2023, China-Kenya trade volume reached $8.6 billion (Sh1.1 trillion)," said Du.

Kenya has also benefited from participating in the China-Africa Economic and Trade Expo.

The previous edition was held in Nairobi, and preparations are underway for the next one in Changsha this June.

To prepare for the upcoming expo, the Kenya Export Promotion and Branding Agency (KEPBA) is hosting a meeting on Thursday at the Serena Hotel.

It will bring together key players, including farmers, exporters, government officials, and trade associations.

The meeting will focus on helping exporters understand the Chinese market, including its rules, logistics systems, and best business practices.

According to KEPBA, the goal is to open up more export opportunities for Kenyan farmers and entrepreneurs while improving the profitability of non-traditional products by encouraging direct relationships with Chinese buyers.

The Tea Board of Kenya has noted that demand from China is increasingly shifting toward orthodox tea leaves, while most Kenyan tea remains black CTC tea.

Nonetheless, the growing interest from China is helping Kenya diversify its markets.

Africa-China relations analyst Dr. Cliff Mboya said the increase in fresh produce exports reflects Kenya’s gains in production and value addition.

He emphasized that growing trade with China has been supported by improved capacity in key agricultural sectors.