Assessing China’s activities in the construction and infrastructure sectors and their impact on the Kenyan Economy

Abstract

Through literature review and interviews the research sought to establish whether or not the activities of China in Kenya are beneficial to the Kenyan economy. The research established that China’s activities in Kenya date back to pre-colonial years but they became intense in the construction and infrastructure sectors during the last three decades. China is, though, involved in many other sectors such as agriculture, health, sports, trade in materials and equipment, resource extraction, tourisms, aid, among others. However, its activities in the construction and infrastructure sectors have drawn criticism from academicians, politician and policy makers, some of whom argue that the activities of China in Kenya benefit China more that Kenya. That as it may, considering the trade imbalances between the two nations, Kenya is benefiting to a large extend. China’s activities have enhanced job creation opportunities, skills and technology spillover, increase efficiency in service delivery and in helping Kenya close its infrastructural gap. What policy makers need to do is to ensure that they tap into the potential that China’s activities present to the Kenyan economy, and at the same time work out ways of mitigating the trade imbalances between the two nations.