Trends and impacts of China’s FDI in Kenya

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Since China’s reforms, the country has experienced tremendous growth and expansion. China’s government has encouraged the companies to go global, with the recent reforms of the Go West and Going Global policy. Since China became a member of the World Trade Organisation in 2001, economic reforms have led to a spectacular economic success which has generated rapid economic growth over two decades. The country has moved from a centrally-planned economy towards a market economy. This research study focuses on the impact and the trends of Chinese FDI (foreign direct investment) on Kenya’s economic sectors of agriculture, infrastructure, manufacturing, and tourism. It seeks to quantify the advantages and disadvantages through the SWOT analysis and to suggest policies necessary to maximize the development impact of China in Kenya. The study takes a qualitative and quantitative approach with close textual analysis of the existing data and information from the Kenya embassy in Beijing and KIA and auxiliary information from existing written literature, books, internet sources, journal articles and interpretation of these sources.