President William Ruto has witnessed the signing of investment deals worth nearly one billion dollars, which include the leasing of the Hilton and Intercontinental hotels to Chinese investors.
A total of $823 million (Sh106 billion) was signed on the second of the four-day state visit.
The two iconic hotels, located in Nairobi’s Central Business District, were shut down nearly five years ago due to the Covid-19 pandemic and have remained closed since.
The government has been seeking investors to revive them but faced challenges until now.
Last month, the state announced that the planned divestiture of Nairobi’s iconic Hilton and Intercontinental hotels had encountered difficulties amid struggles to find a buyer for the prime properties.
Documents tabled in the National Assembly revealed that the Privatisation Authority did not receive any buyers who could meet the reserve price set by the government for its shares in the two deteriorating high-end hotels.
A leading Chinese hotel investor, with a capital of $14 billion (Sh1.8 trillion) and extensive experience operating hotels in Europe and Southeast Asia, has now agreed to lease the two hotels.
According to KenInvest, the Hunan Conference Exhibition Group/Huatian Hotel Management Company will initially lease the two facilities with the intention of eventually purchasing them.
They are first-time investors in Kenya, and the government has promised them several incentives as they establish their operations.
“We are very excited about this deal because of its potential to attract tourists, especially from Eastern Asia, and the jobs it will create for our people,” said Prime Cabinet Secretary Musalia Mudavadi, who also serves as the Minister of Foreign Affairs.
Additionally, President Ruto and his team have successfully convinced another Chinese investor, Shandong Jialejia Agriculture and Animal Husbandry Technology Company, to establish a $30 million (Sh3.8 billion) chicken farm.
The company plans to start operations with a stock of half a billion egg-laying chickens, which will be exported to China. They will also set up another 10,000 breeding chickens, complete with a feed factory, thereby creating over 500 jobs for Kenyans.
Another Chinese company, Chongqing Shangcheng Apparel Group, plans to construct rental warehouses and set up manufacturing factories for textiles, clothing, and solar power in Machakos at a cost of $20 million (Sh2.6 billion). This initiative is expected to create 7,000 jobs for Kenyans.
The company has already acquired 14.3 acres in Kajiado and 100,000 square meters of warehouses along Mombasa Road in Machakos county.
Congtai Steel Company Limited is another group that has committed $150 million (Sh19 billion) to expand its steel manufacturing plant with additional production lines. It plans to establish a research and development centre in Lukenya, which will create 3,000 jobs.
The company has already secured land for expansion and previously invested $40 million (Sh5 billion) in the Rongai steel facility in Mavoko, Machakos.
Jiubao Electronic Technology Company Limited has pledged to invest $50 million (Sh6 billion) in the smart transport sector. It plans to develop an industrial park in Mombasa that will employ 5,000 people.
They have also identified 50 acres in Murang'a county, where they will establish another industrial park. This will be their first investment in Kenya.
Construction company China Wu Yi, which built Thika Superhighway, refurbished parts of Jomo Kenyatta International Airport, and owns Athi River Precast Factory, is expanding its investments in Kenya.
The company has set aside $150 million (Sh19 billion) to invest in a Special Economic Zone for manufacturing, processing, and warehousing in Kikambala, Kilifi county.
According to KenInvest, this investment has the potential to create 6,000 jobs. The company has already acquired 191 acres of land, and the feasibility study is complete.
Zonken Biotech Corporation Limited is investing $80 million (Sh10 billion). It plans to contract Vineyard Projects for grape seedlings in Baringo County.
They have already acquired 72 acres of land and have so far invested $2.5 million (Sh324 million) in seedling cultivation for apples and grapes in the semi-arid area of Baringo.
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