CHINESE ECONOMIC DIPLOMACY IN FOSTERING INFRASTRUCTURAL DEVELOPMENT IN KENYA

Abstract

The study area for this thesis was Kenya and specific study locations were Nairobi, Kiambu and Lamu counties since they host KUTRRH, SGR, Moi International Sports Centre and Lamu Port which were the infrastructure under study. China’s financial aid comes to Kenya without any conditionality that has hitherto been tied to liberal democratic principles from the west. The focus was on how this partnership manifests itself in infrastructure development since 1963. Kenya-China friendship dates back to more than 600 years but the diplomatic relationship was established in 1963 to present. Chinese mutual development principle is a principle of equality and respect between the Partners and agreements that achieve win-win outcomes. Questions are usually raised due to the fact that Chinese trade agreements are shrouded with a lot of secrecy. For instance, little is Known on the maturity, interest rate and grace period of concessional loan that is extended from China EXIM Bank and the method of disbursing aid is in kind an indication that, money remains in the Chinese system and that aid-financed infrastructural projects still remains at the discretion of the Chinese government. With these revelations, this study therefore, investigated whether Chinese economic diplomacy is fostering infrastructural development in Kenya since 1963. The study was anchored on Power, Modernization and complex interdependency theories which were triangulated to inform the conceptual framework of the study. This study adopted both historical and descriptive survey research designs. Questionnaires, interview guides and observation were the data collection instruments. The study’s sample size was 15 institutions and 143 respondents. The study adopted data from primary to secondary. Both quantitative and qualitative techniques were used for data analysis and presentation. The quantitative data was statistically analyzed and qualitative was thematically analyzed. Mutual Benefit in China-Kenya bilateral relations came out as the most highly applied in Kenya among the principles of peaceful co-existence. This study further revealed that new skills and technology were being transferred to Kenyan construction workers. This study also exposed that Chinese investment in Kenya's development of infrastructure is significantly beneficial to Kenya's informal sector. Equally, this study found out that although China-Kenya bilateral agreements seemed economically viable Chinese firms' terms and conditions are shrouded with a lot of secrecy. The findings revealed that the population of Kenyan low cadre employees are more than that of their Chinese counterparts on Chinese infrastructure construction firms in Kenya. The study concluded that the most popular principle in China-Kenya economic diplomatic relations was the principle of mutual benefit, Chinese investment in Kenya's development of infrastructure is significantly beneficial to Kenya's informal sector because the lower cadre of employees who are actually the majority are acquiring skills that can make them start their own businesses and that although China-Kenya bilateral agreements seem economically viable Chinese firms' terms and conditions are shrouded with a lot of secrecy. This study’s overall conclusion was that Chinese economic diplomacy is fostering infrastructural development in Kenya since 1963. The study’s recommendation was that Kenyan government should formulate a policy that the technological skills impacted on Kenyan workers by Chinese firms should be improved and be included in the Kenyan schools’ curriculum.