Kenya eyes new trade deals as Chinese VP lands in Nairobi

Business
By Brian Ngugi | Mar 23, 2026

Chinese vice president Han Zheng. [File Courtesy]

Kenya is bracing itself for fresh economic pacts with China after Vice President Han Zheng arrived in Nairobi on Sunday, embarking on a high-profile African tour that underscores Beijing’s strategic focus on East Africa.

Han’s visit from March 22 to 30 — at the invitation of Kenya’s Deputy President Kithure Kindiki — highlights Nairobi’s elevated status amid a broader continental charm offensive, analysts say.  

In a statement released Friday by China’s Ministry of Foreign Affairs, the government confirmed the high-level delegation’s itinerary:

“At the invitation of Deputy President of Kenya Kithure Kindiki, Deputy President of South Africa Paul Mashatile, and Vice President of Seychelles Sebastien Pillay, Vice President Han Zheng will visit Kenya, South Africa and Seychelles from March 22 to 30.”

His inclusion of Kenya first on the itinerary, before South Africa and the Seychelles, signals Beijing’s prioritisation of the region’s primary economic hub, diplomatic watchers said.

Analysts view the timing of this visit as a calculated move to cement China’s role as Kenya’s premier development partner in the region.

“Beijing attaches outsized importance to Nairobi as a gateway for Belt and Road Initiative (BRI) expansion,” said Ian Njoroge, a Nairobi-based economist.

The trip aligns with China’s May 1 zero-tariff policy for 53 African diplomatic partners, including Kenya. This escalates a June 2024 pledge, offering duty-free access to 98.2 per cent of Kenyan goods — identical to the “Early Harvest” under the Agreement on Economic Partnership for Shared Development.

This preliminary pact provides Kenya — which is a middle-income nation previously ineligible for Least Developed Country perks — with tailored market access. 

It targets agricultural exports to China’s 1.4 billion consumers, slashing 10 per cent average tariffs on tea, coffee, macadamia nuts and avocados. The economic stakes are massive. In 2024, the trade imbalance saw Kenya import Sh729.2 billion ($4.44 billion) from China, while exporting only Sh33.1 billion ($202 million). Han’s visit is expected to seal the final instruments to narrow this gap. The visit follows a landmark week for infrastructure. 

On Saturday, President William Ruto broke ground on the Naivasha-Kisumu-Malaba SGR leg — a 380km stretch completing a 1,000km link to Uganda. Backed by Chinese financing, the extension aims to slash freight costs by 40 per cent per tonne-kilometre and transit times by 30 per cent. To date, the SGR has moved 45 million tonnes of freight and 12 million passengers, easing road congestion and boosting Rift Valley exports.

Analysts say Kenya’s “playbook” masterfully pits East against West without choosing sides. 

As Han Zheng begins his meetings, Kenya’s dual-track strategy thrives. 

Analysts and officials say Ruto is leveraging the East for infrastructure and the West for specialised markets and minerals.  In January 2026, Nairobi timed the Agoa renewal announcement (US duty-free access extended to 2028, supporting 330,000 jobs) just before the China “Early Harvest” reveal, dodging Washington’s ire. 

Agoa had lapsed in September 2025, threatening apparel exports worth Sh95.1 billion ($737 million). The African Growth and Opportunity Act grants Sub-Saharan nations tariff-free US entry. US lawmakers often frame it as a tool to counter Chinese influence.

Washington is countering with a race for critical minerals. 

A recent Nairobi conference hosted by US Deputy Secretary Christopher Landau eyed Mrima Hill’s 40 million tonnes of rare earths and 680 million kilos of niobium — vital for electric vehicles, artificial intelligence and defence.

Share this story
Centum Re begins handover of 400 apartments at Nairobi's Two Rivers
Centum Real Estate has begun handing over units at its 400-apartment Cascadia development within Nairobi’s Two Rivers, with phased delivery expected through December 2026.
Epra makes marginal hike on pipeline tariff, piles pressure on consumers
Epra has increased the cost of using the pipeline to transport fuel from the Kenyan coast to the rest of the country. 
Why housing has become an economic crisis
The pertinent question at the 13th session of the World Urban Forum has not been if housing is important, but the justification that the global economy is hanging in the balance on its success.
ICPAK urges accountants to restore trust in public institutions
Accountants have been asked to become public finance stewards and ensure trust and transparency is restored in auditing public institutions.
Alarm raised over lagging decarbonisation in construction industry
Decarbonisation of buildings in the construction sector has slowed globally, leaving it as a major source of emissions and increasingly vulnerable to climate impacts and energy price shocks.
.
RECOMMENDED NEWS