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.”
READ MORE
State roots for value addition to boost industrial output
Iran war a blessing in disguise for Lamu Port
How PwC freeze casts shadow on Kenya infrastructure agenda
Sh650 billion project: Questions raised over Ruto's Naivasha-Kisumu-Malaba SGR expansion plan
Ketraco gets nod to reappoint board after petition struck out
Kenya targets 240,000 youth jobs in fisheries sector expansion
Kenya's insurance industry faces its claims moment
Co-op Bank posts Sh29.75b profit, proposes a record Sh14.67 billion dividend
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.