Kenya-china Bilateral Relations in Infrastructure Development: a Case Study on Remuneration of Local Employees

Abstract

The employment of workers on casual terms denies them protection by minimum wage standards, social benefits and labor union membership. The Chinese Multinational Corporations (MNCs) operating in the road construction sub sector have been accused of providing inadequate wages and wrongful termination. Disagreements between Chinese enterprises and Kenyan workers have a severe impact on infrastructure development and, as a result, bilateral ties between the two nations. The study‘s main objective is to evaluate Kenya-China bilateral relations in infrastructural development: a case study on remuneration of local employees within Nairobi region. The study sought: to determine the influence of Kenya-China bilateral relations on infrastructural development within Nairobi region; to establish the influence of company ownership on the remuneration of local employees under Kenya-China bilateral relations in infrastructure development within Nairobi region; to assess the influence of Kenya-China bilateral relations in infrastructural development on the average level of wages of local employees within Nairobi region. The Liberalism theory, Herzberg two factor theory and the theory of Wage Norms guided the study. A cross-sectional descriptive design was used to provide a clear description of the phenomenon under study. The study targeted four projects two of which are operated by Chinese companies while the other two are operated by local Kenya indigenous companies. Primary and secondary data was gathered for the study. A questionnaire and an interview guide was utilized to gather primary data. Descriptive statistics were used for the analysis of the quantitative data. A qualitative approach of data analysis was adopted to analyze data collected from the interview guide. Tables and figures were adopted to present the quantitative data while narration format was used to present qualitative data. According to the findings, China's involvement in Kenya's infrastructure has led in the country's development and growth. However, this progress has been followed by a negative effect of Kenya increasing its debt to China. The study found that the Chinese construction companies remunerated the local employees poorly as compared to the Local construction companies. The findings indicated that the work environment of the local employees in the Chinese companies was poor. The study concludes that Kenya-China bilateral relation on infrastructure projects has an influence on the remuneration of local employees in Kenya. The study suggested that the government should implement accountability and transparency with reference to the financing borrowed from China. A recommendation made in the study is that the government through COTU should ensure that the labour laws of Kenya are followed by all employers including international companies with subsidiaries in Kenya. The study suggests that research should be conducted focusing on the working environment in Chinese operated projects.