Kenya looks beyond China to diversify economic ties

Subject

'Look East' policy outlook.

Significance

China plays an important and visible role in Kenya's economic development, through the extension of direct investment and concessionary loans. However, its significance for trade and as an inspiration for Kenya's economic planners is often overstated. Singapore and Malaysia are more prominent in policy model emulation, while trade with India far surpasses that of other Asian players.

Impacts

• Growing economic ties with Chinese and other Asian partners ease the pressure on Kenya to fight corruption.
• Infrastructure projects with Chinese firms are thought to offer significant economic rents for political elites.
• Western states' leverage to demand democratic reforms will weaken, in turn reducing funding for civil society.