Treasury Cabinet Secretary Henry Rotich. China sidestepped Kenya in a
deal that has seen almost 50 countries join its new development bank.
FILE PHOTO | NATION MEDIA GROUP
China sidestepped Kenya in a deal that has seen almost 50
countries join its new development bank. The Beijing-led investment bank
is expected to challenge the World Bank’s dominance in funding
government projects.
By last week’s Tuesday deadline to
seek founding membership of the $50 billion institution, Kenya had not
applied to be part of the Asian Infrastructure Investment Bank (AIIB).
National Treasury Cabinet Secretary Henry Rotich said this was a result of China not extending an invitation.
“AIIB
did not send us a letter stating the articles of agreement and inviting
us to apply. Such letters of application are usually addressed to me or
Foreign affairs; they formerly state what they have and ask if we have
interest,” said Mr Rotich.
DEALING WITH KENYA
He
said they were sent articles of association for membership in the case
of IMF and World Bank, which are already dealing with Kenya.
The
China-led Asian Bank, has an expected initial capital of over Sh4.6
trillion and focuses on funding infrastructure projects especially for
founder members and is considered the next big thing after the World
Bank and Asian Development Bank.
The bank’s signatories
include countries closely allied to China such as Kazakhstan and
Myanmar, but also some of Washington’s biggest friends — Germany,
Britain, France, Italy and Australia.
China is one of
Kenya’s most important international partners with connections as a
diplomatic ally, donor and trade counterpart.
Kenya’s
major infrastructure projects such as the standard gauge railway and
Mombasa port expansion are financed by China and Japan respectively.
It, therefore, comes as a surprise that the country was not invited to be a founder of AIIB.
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