Kenya turns to China to sustain development projects as US financing dries up
Deputy Director-General at Asia and the Pacific Directorate at the State Department for Foreign Affairs Jane Makori (left), Deputy Director-General, Political and Diplomatic Affairs at the Ministry of Foreign and Diaspora Affairs Lucy Kiruthu and Deputy Chief of Mission and Minister Counsellor of the Chinese Embassy in Kenya Zhang Zhizhong at the Global Development Initiative Seminar at JW Marriot Hotel in Nairobi on November 13, 2025.
Kenya is increasingly turning to China to sustain its development agenda as traditional Western financing, particularly from the United States, continues to shrink.
Reaffirming its commitment to Beijing’s Global Development Initiative (GDI), Nairobi said the Chinese Initiative is a crucial lifeline for ongoing national projects at a time when international development funding is tightening worldwide.
A growing global financing shortfall, estimated at Sh517.2 trillion for countries to meet the UN Sustainable Development Goals (SDGs) by 2030, has forced many developing nations to seek alternative partnerships. For Kenya, the GDI has quickly become a strategic anchor, providing resources and technical support to keep major programmes on track.
Over the past few years, the United States has scaled back its overseas commitments by cutting USAID funding and limiting access to trade-support frameworks such as the African Growth and Opportunity Act (Agoa). The reduction has left gaps in sectors that once depended heavily on US backing, prompting Nairobi to deepen cooperation with Beijing.
At a seminar in Nairobi convened by the Chinese Embassy and the China International Development Cooperation Agency, senior officials from both governments emphasised the GDI’s significance at a moment when Western development assistance is faltering.
Representing Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs Musalia Mudavadi, Deputy Director-General for Political and Diplomatic Affairs Lucy Kiruthu said the GDI aligns seamlessly with Kenya’s Vision 2030 and long-term development needs.
“Kenya, like other friends of the GDI, believes in the importance of a cooperative platform that allows countries to share experiences and implement sustainable, impactful projects,” Ms Kiruthu said, noting that many GDI-backed initiatives, though modest in scale, are transforming rural communities through job creation, clean water access, smart agriculture, and value addition.
More partners
She then commended China and UN agencies for supporting Kenya through the South-South Cooperation Fund and urged more partners to contribute, saying the country remains committed to working with multilateral institutions and friendly nations to deliver on the 2030 Agenda.
Chinese Ambassador to Kenya Guo Haiyan described the GDI as a “global public good” that has attracted support from more than 130 countries and international organisations. In the past four years alone, she said, China has channelled over 23 billion US dollars into the initiative and rolled out more than 1,800 cooperation projects across areas such as poverty reduction, food security, climate resilience, digital innovation, and industrialisation.
Her message was clear: the GDI is stepping in where traditional donors are retreating.
“At a time when development financing from some quarters is waning, GDI provides a practical alternative based on equality, mutual benefit and respect for national priorities,” Ambassador Guo said.
China plans to implement 2,000 additional “small and beautiful” livelihood projects in developing countries over the next five years and expand its South-South Cooperation Fund to support digital skills, maritime development, and clean energy programmes.
Kenya’s development partnership with China has deepened steadily over the past decade, with Beijing now the country’s largest trading partner and primary bilateral creditor. China accounts for roughly 64 percent of Kenya’s external bilateral debt, about Sh1.1 trillion by mid-2025, and bilateral trade reached Sh530 billion in 2024.
While China remains Kenya’s biggest import source, demand for Kenyan tea, coffee, flowers, and avocados in the Chinese market continues to grow.
Major infrastructure projects, including the Standard Gauge Railway, Nairobi Expressway, Thwake Dam, and the Garissa Solar Plant, stand as some of the most visible outcomes of the partnership. Cooperation has since broadened beyond infrastructure into manufacturing, energy, agriculture, health, and technology.
Ms Kiruthu further added that Kenya “remains ready to continue working closely with China and other like-minded partners to advance sustainable development, bridge financing gaps and ensure that no nation is left behind.”
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