Leiden University Student Repository

Meinen, Sean (2024)

China's Belt Road initiative in Kenya: A win-win or a win-lose situation?

Bachelor thesis | Chinastudies (BA)

China's been calling its investments in Kenya a win-win situation. The government of China is claiming its investments are to help and grow Kenya's economy. For example, it has financed the SGR (The Standard Gauge Railway) to deeply strengthen Kenya’s infrastructure. However, some senior American officials have frequently cautioned developing nations, especially those in Africa, about the risks of Chinese loans. In a 2020 State Department report titled "The Elements of the China Challenge," China's "predatory development program and debt-trap diplomacy" were mentioned. The Communist party’s motive in Kenya is to create a close economic partnership between that includes substantial financial exchanges and investments. This strong financial relation is an important factor for the Party's economic policy of investing in Africa. Kenya’s geographical location is favourable and a good gateway to the rest of Africa. The Party has set up a project to invest and create strong financial...Show moreChina's been calling its investments in Kenya a win-win situation. The government of China is claiming its investments are to help and grow Kenya's economy. For example, it has financed the SGR (The Standard Gauge Railway) to deeply strengthen Kenya’s infrastructure. However, some senior American officials have frequently cautioned developing nations, especially those in Africa, about the risks of Chinese loans. In a 2020 State Department report titled "The Elements of the China Challenge," China's "predatory development program and debt-trap diplomacy" were mentioned. The Communist party’s motive in Kenya is to create a close economic partnership between that includes substantial financial exchanges and investments. This strong financial relation is an important factor for the Party's economic policy of investing in Africa. Kenya’s geographical location is favourable and a good gateway to the rest of Africa. The Party has set up a project to invest and create strong financial relations with other countries, which is called: The Belt and Road initiative. However, to what extent are these investments in Kenya a win-win situation? My research question is as follows: To what extent are the Chinese investments in Kenya, as part of the Belt and Road Initiative (BRI), favourable to Kenya? A favourable situation is when Kenya can gain motives and benefit from investments. China wants to advance its economic and geopolitical objectives through a strong financial connection with Kenya in order to broaden its trading network, get access to resources, and boost its global influence through the BRI. Kenya's motives are to use Chinese investments as a resource to strengthen and develop its economy and general standards of living. To get an answer to this question, sub-research questions related to the matter must be answered first. I will be looking at the following questions and problems. Firstly, to get an understanding of the research question, I will explain what the Belt and Road initiative is. What are the goals of China's Belt and Road initiative within Kenya? We will be looking at China's investment projects in infrastructure and the economy in Kenya. I will focus on three projects that exhibit a significant relationship between Kenya and China. The three projects are: The Mombasa-Nairobi Standard Gauge Railway Project (SGR), The establishment of the Confucius Institute at the University of Nairobi in 2005, and finally the establishment of the Kenya-China Vocational Education and Training (VET) Centre in 2017. The three projects: Confucius Institute, Kenya-China Vocational Education and Training Centre, and Mombasa-Nairobi Standard Gauge Railway are infrastructure developments with the goals of enhancing travel, intercultural exchange, and vocational training. Even though they have significant economic implications, it is important to recognise their broader effects and objectives that go beyond economic considerations. These steps could help China and Kenya create a more substantial and productive partnership that will advance cooperation, cross-cultural understanding, educational possibilities, and possible employment chances. Secondly, to grasp a better understanding of the importance of answering the research question, I will discuss the criticism of the China-Kenya relationship. For example, Chinese participation in African farming has sparked a heated debate online and in the media, giving rise to accusations of Chinese “land grabbing” in Africa. After understanding the research question and its context, the next step is doing the research. To see if the projects are favourable to Kenya, research on the gains and losses is needed. I will discuss the gains of Kenya with building a relationship with China and what other future goals within Kenya have been achieved. Furthermore, I will look into the losses of China on political credibility and the political tensions triggered within Kenya's population. In addition, I will discuss the gains of Kenya in getting the opportunities to build and grow her economy. On the contrary, we will also be looking at the risks that come along with these investments. Chinese companies involved in infrastructure projects in Kenya have been charged with discriminating against Kenyan workers and giving Chinese workers the upper hand in hiring for high-paying positions. This created tensions between Chinese businesses and Kenyan employees and prompted concerns about how equitable Chinese investments in Kenya were. Disputes over wages, employment benefits, land compensation, environmental impacts, and supply contracts all can cause disagreement within and between the local communities, the local authorities, and the Chinese managers. However, how China’s Belt and Road initiative policies work in one country, can work differently in another country. For example, if China finds a working method to deal with conflicts in a certain country, it may see if this method is also suitable for other involved countries. Kenya is not the only country that is involved in the Belt and Road initiative. Other countries like Afghanistan, Bulgaria, and Chile are also among the many countries that joined this initiative. The Belt Road initiative projects secure trade routes and thus improve trade and foreign investment. Getting an understanding of the financial relationship between Kenya and China helps to understand the relations of the other involved countries to an extent. The differences in culture, geographical location, and financial situation between the countries lead to different scenarios and problems. Pratyusha Basu and Milena Janiec used news media discourses to add Kenyan perspectives to the debate over China’s infrastructural loans. This method is a good stepping stone to see Kenya’s side of the story and her opinion on a win-win situation. However, this method can also be criticised. The news and media discourses are not the right tools to represent the view of the Kenyan people. According to Wilson Ugangu, new trends in Kenyan political communication have resulted in the alienation of the citizen in the democratic enterprise. Further he claims that “citizens' participation in the political process is mostly reduced to spectatorship”. In order to get the right picture and view of the Kenyan people being involved in these projects, I am convinced it is better to measure the gains and profits through critically looking at the projects funded by the Chinese government itself. This will be done through looking at the three, already mentioned, case studies.Show less

One Belt One Road, China, Kenya, SGR, Confucius Institute, VET Centre

Author

Meinen, Sean

Faculty

Faculty of Humanities

Supervisors

Dr. J. Wang

ECTS Credits

10

Language

en