Effects of China’s Road and Belt Initiative on Kenya’s Economic Growth and Development: A Case of The Standard Guage Railway Project
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Date
2024-10
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Daystar University, School of Arts and Social Sciences
Abstract
This study analyzed the effects of China's Standard Gauge Railway (SGR) on Kenya's economic growth and development, focusing on the multifaceted impacts of the project on transport infrastructure, economic growth, and socio-political dynamics. The research examined the broader implications of China's involvement in the SGR project, which has sparked debate concerning the benefits and challenges of foreign investment in critical transport infrastructure. The study sought to address the research problem of understanding how the SGR has influenced Kenya's development, including concerns over debt sustainability, governance, and national sovereignty. The significance of this research lies in its contribution to discussions about foreign infrastructure investments and their long-term implications for Kenya's development trajectory. This study was guided by three objectives: to assess the role of China in Kenya’s infrastructure development, to evaluate the economic impact of the SGR on Kenya's growth and development, and to analyze the socio-political implications of China’s involvement in the SGR project. The theoretical framework underpinning the study included Dependency Theory. This theory was key in understanding the influence of external forces on Kenya's development, particularly the dynamics of power in foreign aid and investment. A qualitative research methodology was employed, using a descriptive research design to align with the study's objectives. The design enabled an in-depth exploration of the effects of the SGR project from various perspectives. Data were collected through interviews with key informants, including government officials, business leaders, and community representatives, alongside document analysis. A purposive sampling approach was used to select the respondents, of which 16 completed interviews were analyzed. The data were thematically analyzed, focusing on the patterns emerging from respondents' views on infrastructure, economics, and politics. The study found that China’s involvement in the SGR significantly modernized Kenya’s transport infrastructure, reducing freight costs and positioning Kenya as a regional hub. However, concerns about debt sustainability emerged, as the SGR's economic growth was insufficient to offset the long-term financial burden. The findings also revealed that the project had mixed socio-political effects, including public concerns about China's growing influence on Kenya’s foreign policy and governance. Some respondents viewed the SGR as a positive symbol of progress, while others feared it compromised Kenya's political sovereignty. The study recommended that the Kenyan government enhance transparency and public engagement in future infrastructure projects and adopt more sustainable debt management strategies. It further recommended support for local businesses, particularly SMEs, to help them adapt to new market conditions and urged policymakers to critically review Kenya's foreign policy towards China to safeguard political autonomy. Lastly, it recommended strengthening governance and accountability mechanisms to improve project oversight. In conclusion, the SGR has substantially benefited Kenya’s infrastructure and socioeconomy and introduced debt, governance, and political sovereignty challenges. These findings underscored the need for a balanced approach to foreign investment that ensures long-term development without compromising national interests. Further research should focus on the long-term economic impacts of the SGR, China's influence on Kenya's foreign policy, and comparative analyses of Chinese infrastructure projects across Africa.
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in Diplomacy, Development, and International Security
Keywords
China's Standard Gauge Railway
Citation
Oliimi, S. M. (2024). Effects of China’s Road and Belt Initiative on Kenya’s Economic Growth and Development: A Case of The Standard Guage Railway Project. Daystar University, School of Arts and Social Sciences