News

New constitution yields exciting opportunities

Updated: 2010-09-21 09:15

Kenya and China links are stronger than ever as Vision 2030 goals are tackled

A bright new dawn has risen over Kenya's majestic landscape as the country celebrates the birth of a new constitution that reinforces its reputation as a modern and forward-thinking nation and the gateway to East Africa.

The August 27 signing of the new constitution by President Mwai Kibaki followed a referendum in which two thirds of voters supported plans for a comprehensive overhaul of the republic's legislative and judicial procedures.

At the same time, the confident country of 39 million people sent a powerful message to foreign governments, international investors and trade partners, such as the People's Republic of China, that it is determined to achieve its many socioeconomic development goals.

With the ambition to become the region's trade, finance and investment hub, Kenya is making steady progress towards the economic, social and political aims set out in its Vision 2030 strategic plan.

"This moment marks the decisive conclusion of the 20-year journey in search of a new constitutional order," President Kibaki announced during the ceremony to mark the start of a new chapter in the republic's history.

"This new constitution is an embodiment of our best hopes, aspirations, ideals and values for a peaceful and more prosperous nation. This constitution will fundamentally transform our nation politically, economically and socially."

As the region's economic powerhouse, Kenya boasts a strong and diverse economy that benefits from excellent natural and human resources, modern infrastructure, and advanced ICT networks.

Historically an important trade route between Africa and Asia due to its strategic location, Kenya is now a stepping-stone to the greater region following the formation of the East African Community (EAC) common market.

This key trade agreement with neighbors Uganda, Tanzania, Rwanda and Burundi gives companies from Kenya preferable market access to around 85 million people in the vast region.

"The common market will avail greater opportunities for trade in goods and services as we are now five countries with a combined GDP of $75 billion," President Kibaki said.

"This is a great region with vast potential for business and social networking for people. The common market will also provide opportunities for greater capital mobilization to boost investment in the region."

Flourishing trade link

Trade between Kenya and China has flourished and now stands at about $500 million per annum. The pair have signed agreements and Memorandums of Understanding (MOUs) in various fields, including technical and cultural cooperation, education, health, energy, agriculture and cooperative development.

China was among the first countries to congratulate the republic on its new constitution, with Chen Zhili, Vice Chairwoman of the Standing Committee of the National People's Congress (NPC), congratulating President Kibaki during her visit to Nairobi in early September.

In response, President Kibaki hailed the cordial bilateral political and trade relations and expressed gratitude to China for "the immense contribution to Kenya's infrastructural development over the years" that now totals over $450 million.

Earlier this year, the Governor of China Development Bank, Jiang Chaoliang, visited the Kenyan capital and held high-level talks with President Kibaki over a diverse range of potential projects in the housing, transport and energy sectors.

That May 17 visit came just two weeks after President Kibaki attended the World Expo 2010 in Shanghai where Kenya showcased its vast range of resources and investment opportunities to millions of visitors from China, Asia and beyond.

He also took the opportunity to highlight several energy projects that his administration wants to develop in partnership with foreign partners such as China. Officials have identified the High Grand Falls and a range of coal-powered electricity generation developments as potential build-operate-transfer (BOT) projects.

Upon his return from the five-day visit to Shanghai and Beijing, the business-friendly head of state talked of positive bilateral talks with Chinese President Hu Jintao and additional Chinese funding towards development projects in Kenya.

The two presidents also confirmed their commitment to the construction of Lamu port in northern Kenya, which local officials believe will open up the surrounding area to huge sums of FDI.

The massive port project will act as a modern shipping base and boast a free trade zone, international airport, extensive rail network connecting Kenya to other countries, and major oil pipeline from southern Sudan.

China, which established diplomatic ties with Kenya in 1963, has already pledged its full support to the Lamu port development plan and, given the excellent bond between the two countries, China's public and private sectors are expected to play key roles in its construction and financing.

Meanwhile, Kenya's retail sector is growing rapidly as rising employment rates and income levels provide growing numbers of households with more disposable income.

Established 26 years ago, Hotpoint Appliances Ltd is one of Kenya's top importers and distributors of electrical goods and ideally positioned to take advantage of the region's new common market.

With a presence in Rwanda and Tanzania, the company is growing at a rapid rate. To meet the rising demand, the Nairobi-based firm recently launched its own line of products that are being manufactured in China.

"We have an elaborate set-up with a service center, warehousing and logistics support to strengthen sales volumes," said Hotpoint managing director and joint founder, Shailesh Kanani. "We believe in setting global standards, have attained ISO certification and won many awards for our exemplary service and marketing."

China Daily

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