The Impact of Chinese Foreign Investment on Human Rights

Abstract

For many developing countries, foreign investment is considered one of the most significant drivers of economic development. In a bid to attract foreign investment, many African countries have provided several incentives for foreign investors. A recent trend is the Sino-African relationship that not only includes foreign direct investment (FDI) but also commercial loans from China to several African countries. Through its Belt and Road Initiative, China has heavily invested in the infrastructure sector of European, Asian and African countries to increase regional and global connectivity. Kenya is at the forefront of this emerging trend and while the government is attracted to the economic benefits that may come with Chinese foreign investment, these arrangements leave a lot to be desired. This study argues that Chinese foreign investment is beneficial to Kenya’s economy, but it also has negative effects. By analysing the Standard Gauge Railway (SGR) project, and the activities of the China Road and Bridge Corporation (CRBC) as a case study, this study explores the adequacy of the existing international and national frameworks in protecting Kenyans against human rights abuses by multinational corporations, whether private or state-owned