President William Ruto has overseen the signing of investment agreements worth nearly $1 billion, including the leasing of Nairobi’s Hilton and Intercontinental hotels to Chinese investors.
The total value of the deals, signed on the second day of his four-day state visit to China, amounts to $823 million (Sh106 billion). The agreements signify a major step in strengthening Kenya’s economic ties with China.
The Hilton and Intercontinental hotels, both iconic landmarks in Nairobi’s Central Business District, were closed several years ago following the Covid-19 pandemic and have remained shut ever since.
The government had struggled to find investors to refurbish and reopen them, but the newly inked agreements mark a breakthrough in efforts to revive the properties.
Last month, the government revealed that attempts to privatize the hotels had stalled, with no buyers meeting the reserve price set by the Privatization Authority. However, a leading Chinese hotel investment group, which operates Hilton hotels in Europe and Southeast Asia, has now agreed to lease both hotels.
KenInvest reports that the Hunan Conference Exhibition Group and Huatian Hotel Management Company will first renovate the properties, with plans to eventually purchase them. This marks the company’s first investment in Kenya, and the government is eager to support their establishment in the country. The government hopes the move will serve as a catalyst for attracting further East Asian investors.
Prime Cabinet Secretary Musalia Mudavadi, also Minister of Foreign Affairs, expressed enthusiasm about the deal, emphasizing its potential to attract more investors from East Asia and the jobs it will create for Kenyans.
Additional Investments Secured During the Visit
In addition to the hotel deals, President Ruto’s team secured another major investment from Shandong Jialiejia Agriculture and Animal Husbandry Technology Company. The company will establish a $30 million (Sh3.8 billion) chicken farm, producing egg-laying chickens for export to China. The project will also include a feed factory and the setup of 10,000 chickens for breeding and laying, generating over 5,000 jobs for Kenyans.
Furthermore, the Shangcheng Apparel Group plans to invest $20 million (Sh2.6 billion) in manufacturing warehouses and factories for textiles, garments, and solar power in Kajiado. This initiative is expected to create 7,000 jobs. The company has already acquired land in Kajiado and a warehouse in Machakos county along Mombasa Road.
Congtai Steel Company Limited is set to invest $150 million (Sh19 billion) in expanding its steel plant and establishing new production units. The company has committed to building a steel production facility in Lukenya, which will provide 3,000 jobs. It has already invested $40 million (Sh5 billion) in the Rongai steel plant in Machakos.
Jiubao Electronic Technology Company Limited has also pledged $50 million (Sh6 billion) to develop the smart transport sector. The company plans to set up an industrial park in Mombasa, employing 5,000 people, and is eyeing a 50-acre site in Murang’a for its first tech park in Kenya.
China Yu Yi Construction, which has previously contributed to major infrastructure projects in Kenya, including the Thika Superhighway and renovations at Jomo Kenyatta International Airport, will invest $150 million (Sh19 billion) in a Special Economic Zone in Kikambala, Kilifi county. This project will include manufacturing, processing, and warehousing facilities, with the potential to create 6,000 jobs. The company has already acquired 191 acres of land for the project.
Global Cooperation and Reform Call
While in China, President Ruto also addressed pressing global issues, particularly the need for reform of outdated multilateral institutions. Speaking to students and faculty at Peking University, he highlighted the need for a reimagined global cooperation framework to better address contemporary challenges.
Ruto hailed Peking University as a beacon of academic excellence and a historic partner in China-Africa relations, citing the education of over 4,000 African students there since 1956. He invited greater collaboration between Kenya’s Kenyatta University and Chinese institutions in areas like science, technology, and innovation, particularly in artificial intelligence, biotechnology, and the creative economy.
During his speech, Ruto outlined the rapid development of Kenya’s “Silicon Savannah” at Konza Technopolis and discussed the forthcoming National AI Strategy (2025-2030), which he noted would provide a strong platform for joint innovation with Chinese institutions.
The President also emphasized the historic relationship between Africa and China, recalling China’s early diplomatic ties with Kenya in 1963. He described both nations as pivotal partners with shared interests, particularly through initiatives like the Belt and Road Initiative that have led to transformative infrastructure projects, including roads, ports, and the Standard Gauge Railway.
Concerns Over Global Systems
However, Ruto did not shy away from criticizing the current state of global governance. He described the post-World War II multilateral system as “broken and dysfunctional,” specifically pointing out the United Nations Security Council’s failure to live up to its resolutions. The President also raised concerns about the outdated nature of the Bretton Woods institutions, which he argued are no longer reflective of today’s global realities.
Ruto also emphasized the pressing issues facing the global financial system, including the lack of liquidity in crises, insufficient climate and development financing, the high cost of capital for poorer nations, and recurring debt crises.
Turning to climate change, Ruto urged a fair global response, noting that Africa bears the brunt of a crisis it did little to cause. He called for just solutions to the environmental challenges, particularly those affecting food security and livelihoods on the continent.
Credit: Uzalendonews
