Kenya Courts Chinese Capital for Long-Term Infrastructure Partnerships

Kenya is seeking to deepen economic ties with China by attracting long-term investment into infrastructure, positioning public-private partnerships (PPPs) as a vehicle for mobilising capital, expanding Chinese business participation and strengthening the country’s role as a regional trade and logistics hub.

 

Principal Secretary for Public Investments and Assets Management Cyrell Wagunda urged Chinese investors to move beyond construction contracts towards equity investment, technology transfer and strategic partnerships with Kenyan institutions.

 

“In return, we guarantee a stable framework, timely decisions, and Government support throughout the life of each project,” Wagunda said during the Kenya Investment Mission in China.

 

The appeal reflects Kenya’s ambition to leverage its economic relationship with China to finance major infrastructure projects while encouraging greater collaboration between Chinese companies, domestic investors and public institutions.

 

Chinese companies have established a significant presence in Kenya’s infrastructure sector, particularly in road construction and transport development. Nairobi is now seeking to build on that relationship by attracting investment models that combine foreign capital and technical expertise with longer-term participation in project ownership and operations.

 

Wagunda identified PPPs as a key mechanism for accelerating infrastructure delivery, enabling private investors to finance, construct and operate projects under agreed contractual arrangements.

 

He cited the Nairobi Expressway, financed, constructed and operated by China Road and Bridge Corporation (CRBC), as an example of Chinese participation in Kenya’s infrastructure sector.

 

“The Expressway has changed how people move in Nairobi and is a classic example of what can be achieved when Chinese capital and expertise meet a clear Kenyan framework,” he said.

 

The expressway demonstrates how Chinese companies can combine engineering capabilities, investment and operational involvement in major transport projects.

 

Kenya is also pursuing the Nairobi–Nakuru–Mau uSummit highway project, being developed by CRBC and Shandong Hi-Speed Road and Bridge International at an estimated cost of US$1.5 billion.

 

Wagunda described the development as the largest road PPP on the African continent, highlighting the scale of opportunities available to Chinese investors in Kenya’s transport sector.

 

The highway is expected to improve connectivity between Nairobi, western Kenya and regional markets across the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA) and the African Continental Free Trade Area (AfCFTA).

 

For Chinese businesses, improved transport infrastructure could facilitate goods movement and strengthen access to Kenya and neighbouring markets. Kenyan enterprises could also benefit from better connections supporting agricultural exports, manufacturing, distribution and cross-border trade.

 

Wagunda urged Chinese companies to examine Kenya’s infrastructure project pipeline and engage directly with the Public-Private Partnerships Directorate and relevant contracting authorities to identify viable opportunities and advance project implementation.

 

He also encouraged strategic partnerships between Chinese investors and Kenyan institutions, including pension funds and the National Infrastructure Fund, to mobilise long-term capital, share investment risks and increase domestic participation.

 

Such arrangements could enable Chinese companies to work alongside Kenyan institutional investors, broadening the sources of financing beyond direct foreign investment. They could also create opportunities for local participation in infrastructure financing, management and associated business activities.

 

For Kenya, the challenge is to convert investor interest into commercially viable projects that deliver public benefits without creating unsustainable financial obligations. Transparent procurement, clear contractual terms and effective oversight will be important in maintaining investor confidence and protecting public interests.

 

Wagunda reiterated the government’s commitment to providing an enabling investment environment through predictable frameworks, timely decisions and institutional support throughout project implementation.

 

The investment mission signals Kenya’s intention to broaden economic cooperation with China from infrastructure construction towards long-term investment partnerships.

 

As Kenya seeks financing for transport links supporting regional commerce, the business proposition centres on combining Chinese capital, technology and engineering expertise with Kenyan institutional partnerships and access to regional markets. The lasting benefits will depend on sound financing, effective project delivery and the economic value generated for Kenyan businesses and citizens.

Mercy Kachenge
Mercy Kachenge
Mercy Kachenge is a Kenyan multimedia journalist, communications professional and media consultant specializing in health, science, policy and development. She produces engaging, public-interest content across multiple media formats, translating complex issues, research and policy into clear and impactful stories.

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