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Post Reply: Kenya Secures Sh130 Billion Deal During President Ruto’s China Visit

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on April 23, 2025, 7:02 am</div><div id="pl-4901" class="panel-layout">
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During a four-day state visit, President William Ruto oversaw the signing of investment deals totaling nearly $1 billion, with $823 million (Sh106 billion) finalized on the second day. A significant highlight was the leasing of Nairobi’s iconic Hilton and Intercontinental hotels, located in the Central Business District, to Chinese investors. These high-end hotels, closed since the Covid-19 pandemic nearly five years ago, faced challenges in attracting buyers until now. Last month, the Privatisation Authority reported difficulties in finding investors meeting the government’s reserve price for the deteriorating properties. However, the Hunan Conference Exhibition Group/Huatian Hotel Management Company, a leading Chinese hotel investor with $14 billion (Sh1.8 trillion) in capital and experience operating hotels in Europe and Southeast Asia, has agreed to lease the hotels with plans for eventual purchase. As first-time investors in Kenya, they will receive government incentives. Prime Cabinet Secretary Musalia Mudavadi, also the Minister of Foreign Affairs, emphasized the deal’s potential to boost tourism, particularly from Eastern Asia, and create jobs.

Beyond the hospitality sector, Chinese investments span agriculture, manufacturing, and technology. Shandong Jialejia Agriculture and Animal Husbandry Technology Company will invest $30 million (Sh3.8 billion) in a chicken farm, starting with 500 million egg-laying chickens for export to China and 10,000 breeding chickens, supported by a feed factory. This project is expected to create over 500 jobs. Chongqing Shangcheng Apparel Group will invest $20 million (Sh2.6 billion) to build rental warehouses and manufacturing facilities for textiles, clothing, and solar power in Machakos, creating 7,000 jobs. The company has secured 14.3 acres in Kajiado and 100,000 square meters of warehouses along Mombasa Road. Congtai Steel Company Limited will expand its steel manufacturing plant with a $150 million (Sh19 billion) investment, including a research and development center in Lukenya, generating 3,000 jobs. The company, which previously invested $40 million (Sh5 billion) in its Rongai facility, has acquired land for this expansion.

In the smart transport sector, Jiubao Electronic Technology Company Limited will invest $50 million (Sh6 billion) to develop an industrial park in Mombasa, employing 5,000 people, and another park on 50 acres in Murang’a county, marking its first Kenyan investment. China Wu Yi, known for constructing Thika Superhighway and refurbishing parts of Jomo Kenyatta International Airport, will invest $150 million (Sh19 billion) in a Special Economic Zone in Kikambala, Kilifi county, for manufacturing, processing, and warehousing. This project, with a completed feasibility study and 191 acres of acquired land, is expected to create 6,000 jobs. Finally, Zonken Biotech Corporation Limited will invest $80 million (Sh10 billion) in grape and apple seedling cultivation in Baringo county, having already acquired 72 acres and invested $2.5 million (Sh324 million). These deals, facilitated by KenInvest, underscore Kenya’s growing appeal to Chinese investors and promise significant economic benefits through job creation and infrastructure development.

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