We’ll pursue more trade deals with China, President Kenyatta says
President Uhuru Kenyatta and State Councillor and Minister for Foreign Affairs of the People’s Republic of China Wang Yi inspect the ongoing construction of the new offshore Kipevu Oil Terminal at the Port of Mombasa on January 6, 2022.
What you need to know:
- New Kipevu oil terminal being built by the Chinese is expected to handle larger vessels.
- The terminal will be one of the biggest on the continent once completed.
President Uhuru Kenyatta has defended the trade deals between Kenya and China, saying they have spurred development.
The President made the remarks during an inspection of an oil terminal being built by the Chinese in Mombasa yesterday.
The terminal will be one of the biggest on the continent once completed.
He said Kenya would pursue more partnerships and trade deals with China to build on the cooperation between the two nations.
Mr Kenyatta, who was at Kipevu oil terminal, praised Chinese influence in Kenya and Africa in general, saying stronger and strategic partnerships would accelerate economic growth.
He added that recent years have witnessed a rapid growth of China-Kenya relations in different sectors.
The President spoke after inspecting the $353 million (Sh40 billion) Kipevu oil terminal.
The terminal is expected to handle larger oil tankers.
It is being built by China Communications Construction Company to supplement the current 50-year-old terminal.
Capacity to handle crude
The President said once commissioned in a few weeks, the new terminal would save Kenya almost Sh2 billion every year, which the government pays for demurrage occasioned by long queues of vessels waiting to discharge oil.
Completion of the terminal this month will see Kenya double its capacity to handle transit petroleum products to Uganda, Rwanda and Burundi from 35,000 tonnes.
It can handle up to four vessels at a time, compared with the old terminal that only hold just one.
The terminal can handle vessels with a dead weight of 200,000 tonnes and has a liquefied petroleum gas (LPG) line to stabilise supply in Kenya.
Kenya Ports Authority says faster loading is expected to translate to lower LPG prices.
The terminal will have sub-sea and land-based pipelines connecting it to storage tanks in Kipevu.
It will also have the capacity to handle crude and heavy fuel as well as three types of white oil products – DPK-aviation fuelAGO-Diesel and PMS-Petrol.
“This oil terminal will go a huge distance towards ensuring that we reduce not only the cost of fuel to our people but also to ensure Kenya consistently has adequate supplies,” President Kenyatta said.
An aerial view of the new Kipevu oil terminal in Mombasa county. President Uhuru Kenyatta and visiting State Counsellor and Minister for Foreign Affairs of the People’s Republic of China, Wang Yi, inspected the terminal and signed several bilateral trade deals on January 6, 2022.
At the tour of the terminal, which is 96 per cent complete, was Chinese Foreign Minister Wang Yi.
Earlier in the day, the two leaders held talks on regional peace, security as well as the global fight against the Covid-19 pandemic at State House, Mombasa.
“This is a partnership of friends working together to meet Kenya’s socio-economic agenda. The old terminal was unable to meet the demands of our increasing population and growing economy,” President Kenyatta said.
“We needed the terminal to cater for those new demands and China was there when we asked for partnership in developing it. China walked with us hand in hand. We do not need lectures but partnership to achieve what is required.”
The President also spoke about the standard gauge railway (SGR), which he insisted has transformed transport, logistics and tourism.
“During the Covid-19 pandemic, thousands of Kenyans took advantage of the railway to travel to Mombasa and ensure hotels were not closed and our people remained employed,” he said.
“Our tourism did not sink completely. That would not be the case had it not been for the railway.”
President Kenyatta added that the SGR is also helping ferry farmers’ tea to Mombasa.
Major link roads in Mombasa
“Delivering a container from Nairobi to Mombasa cost Sh60,000. The same is now being delivered at Sh17,000. That is a direct saving that goes to the pocket of the farmer. That is what development is all about,” the President said.
“We will soon commission the new link roads in Mombasa. The roads are ready and the bridge will be ready soon. Congestion will be a thing of the past for the long-suffering travellers.”
President Kenyatta said the major link roads in Mombasa would facilitate development, ease the cost of travel and reduce cost of living.
The President criticised those questioning the large scale infrastructural projects being undertaken by his administration, saying they have improved the cost of living and doing business.
“With the completion of this project, the benefits will directly relate to the pockets of our people. Our partnership with China is of friends working together to meet Kenya’s socio-economic agenda,” the President added.
Kenya and China signed six agreements yesterday and promised to form a joint working group to address trade barriers and imbalance between the two countries.
The agreements were signed by Foreign Affairs Cabinet Secretary Raychelle Omamo and Mr Yi.
President Kenyatta and Ms Omamo expressed hope that the agreements would increase exports to China and improve the local economy.
