24Feb 2023
Kenya-China trade growing businesses in Kenya
In 2014, China overtook India to become Kenya's top source of imported goods.
In Summary
- Since then, the two parties have had a shared history of friendship that has lasted into modern times, according to the Chinese State Councilor and Foreign Minister Wang Yi.
- Trade between the two countries has evolved over years, from the pre-Kenya independent era; the colonial era when Kenya was ruled by the British Empire, and the Cold War era, into modern-day trade.
The Kenya-China relationship can be traced way back to 1572, as history puts it, when Zhang He, a Chinese sailor and emissary led a trade fleet to Mombasa.
Since then, the two parties have had a shared history of friendship that has lasted into modern times, according to the Chinese State Councilor and Foreign Minister Wang Yi.
Trade between the two countries has evolved over years, from the pre-Kenya independent era; the colonial era when Kenya was ruled by the British Empire, and the Cold War era, into modern-day trade.
However, bilateral relations were strengthened in December 1963, after the formal establishment of Kenyan independence, when China became the fourth country to open an embassy in Nairobi.
The Asian country has since then actively engaged with African countries, Kenya among key states in the East African region, in driving its Belt and Road initiative as a model for developing countries.
In 2014, China overtook India to become Kenya’s top source of imported goods, which has since been instrumental in the supply of raw materials for local industries, and finished goods widely traded by local small businesses.
It is a major source of goods and driver of business for Micro, Small and Medium-Sized Enterprises (MSMEs), where Kenya is estimated to have over 7.4 million MSMEs, employing approximately 14.9 million Kenyans in various sectors of the economy.
SMEs constitute 98 per cent of all businesses in Kenya, which is East Africa’s biggest economy and create 30 per cent of jobs annually.
Major imports include industrial and construction machinery, commercial vehicles, fast-moving consumer goods such as electric material and electronics, and clothing items, among others, as China remains a major global manufacturer and supplier including Europe and the US.
Kenya is a big market for electrical and electronic equipment, iron and steel, plastics, rubbers, furniture, lighting signs, prefabricated buildings, optical, medical apparatus, footwear, paper and paperboard and pharmaceutical products.
Other goods are railway, tramway locomotives, rolling stock, glass and glassware, ceramic products, toys, soaps, lubricants, and food products among others.
Fredrick, a second-hand clothing dealer commonly known as ‘Mitumba’ is among small traders in Kenya who deal in Chiese imports.
The father of three who operates at the famous Gikombaa Market in Nairobi has been in the trade for more than five years now, a business that supplements his other incomes, enabling him to provide a decent shelter for his family and education for his children.
“Is China a good trading partner, I would say it is for SMEs because of cheaper products compared to other markets. If you can get them in bulk then you can easily make some good money,” Fredrick tells the Star.
He says during the current tough economic times where households are battling high inflation, Chinese imports have come in handy for many.
However, he is concerned that Chinese traders have taken up the supply chain in Kenya.
“They import and sale locally, they should give room for Kenyan businesses to benefit from the local supply chain,” he says.
The second-hand clothing “Mitumba” sector remains key in creating employment in Kenya, with China a major supplier.
According to the Mitumba Consortium Association of Kenya (MCAK), the trade supports at least 5 24 million households, creating at least 2 million direct jobs and a further 6.2 million indirect jobs.
Veronica Kamau is another trader in Nairobi who has grown her business through imports from China.
She runs three mobile phone retail outlets along the busy Tom Mboya Street in the capital, employing about eight youths.
“When I started in 2019, I has a small shop which I operated with help from my husband, who is in formal employment, so he would just pass by to support me. I have however grown to become an employer. Most of my goods come from China,” she says.
She says one thing she likes about China is that it manufactures and offers a wide range of products which fit her clients’ demands and budgets.