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China’s Infiltration In Kenya’s Business Market

Benson Muriithi by Benson Muriithi
February 20, 2023
in News
Reading Time: 2 mins read
Nairobi,Kenya

[Photo/Courtesy]

China’s growing economic influence has led to increased Chinese investments in African countries, including Kenya.

In recent years, Chinese businesses have been aggressively pursuing opportunities in Kenya’s business market, ranging from infrastructure development to consumer goods.

This has raised concerns among some Kenyan businesses and policymakers, who worry about the potential consequences of China’s infiltration.

Chinese companies are involved in a range of industries in Kenya, including construction, telecommunications, manufacturing, and retail.

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Read: New Traveling Requirements For Kenyans By Chinese Government- What You Need To Know

Chinese firms have won several infrastructure contracts in Kenya, such as the construction of the Standard Gauge Railway, a major railway line connecting Nairobi to the port city of Mombasa.

However, some Kenyan businesses have complained that Chinese companies are receiving preferential treatment in these deals, including tax breaks and other incentives.

Another area of concern is the influx of Chinese consumer goods in the Kenyan market, which has reportedly hurt local businesses. Chinese goods, including textiles, electronics, and household items, are often cheaper than similar products made in Kenya. This has led to increased competition and price pressures on local businesses.

Read: Kenyan Avocados Sold At The Largest Fruit Market In East China

Some Kenyan policymakers have expressed concerns that Chinese companies are driving local businesses out of the market, resulting in job losses and other negative economic consequences.

In addition, there are concerns about the environmental and social impacts of Chinese investment in Kenya. Some Chinese companies have been accused of engaging in environmentally damaging practices and exploiting Kenyan workers.

This has led to calls for increased regulation and oversight of Chinese businesses operating in Kenya, to ensure that they comply with local laws and regulations and do not engage in unethical or harmful practices.

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