| dc.description.abstract | The economic relationship between China and Africa has evolved noticeably over the last five years. There has been an increase in Chinese investment in Kenya particularly in the transport sector. Chinese companies have been involved in the construction of major road networks in Kenya for example, Nairobi- Thika Highway, Airport road in Nairobi, Kipsigak - Serem - Shamakhokho in Rift Valley, Kima-Emusustwi Road and GambogiSerem road in Western Kenya.
Three Chinese companies involved in the construction of Nairobi- Thika Highway were China Wu Yi (Kenya) Corporation, Sheng Li Construction Company and Sinohydro Company. The overall objective of this study was to determine the economic impact of international business relations between Kenya and China through construction of Thika Highway by Chinese companies. To achieve the main objective, the study sought to determine how Chinese foreign investment policies favour investments in Kenya, determine how Chinese investments in Kenyan transport sector has led to creation of employment opportunities, to establish the effects of Chinese investments on Kenyan infrastructure and its impact on gross domestic production in Kenya.
The findings of the study reveal that the existing cordial relationship between the governments of Kenya and China facilitated the award of the tender to improve NairobiThika Highway to Chinese contractors. The Nairobi- Thika Highway Improvement Project has contributed to enhancement of transport services and urban mobility in Nairobi by reducing general transport costs, improving accessibility to public transportation, employment opportunities, housing, and recreation activities. In addition, the project has promoted private sector participation in the management and operation of road infrastructure in Kenya.
Therefore, the project has significant impacts on the Kenyan economy. The study recommends that: (i) Kenya invites other developed countries with favourable foreign investment policies as China's to invest in other areas of Kenyan infrastructure, (ii) Kenya puts in place investment measures and policies that will ensure that foreign investors involve more Kenyans in their work, (iii) Kenya increase bilateral trade within China and other development partners, (iv) the government of Kenya replicate similar project in other towns in Kenya and improve other modes of transport like rail, air and water. | en_US |
