Work done by the Chinese on Thika Road, Museum Hill and other roads is pretty good by Kenyan standards. For the first time we’re beginning to feel like the country is moving in the direction it ought to; becoming the metropolis envisaged in the Vision 2030 artist impressions. More so, you can be in Kangemi and get to Gigiri in 10 minutes thanks to the Northern bypass. So much for Kenyan timing. “I’ll be there in 20 minutes” actually means so if you take a bypass.

Kenya’s infrastructure and economic development is seemingly on overdrive with more funding than ever coming from developed nations. One issue the Business Daily highlighted in separate articles, is that we receive more than 140 billion shillings in foreign funding to Kenya’s energy sector. Foreign Direct Investment is what economic jargon calls this financial gravy train. It's even more scary when you hear the acronym, FDI. China’s coffers are at the forefront of the bonanza having loaned Kenya trillions of shillings over the past decade. The Daily Nation reports that there are 22 Chinese companies currently undertaking 52 projects in Kenya.

We really can’t complain can we? Bigger, better, roads means more efficient transport and greater economic productivity among numerous other benefits. Nobody likes to sit in traffic. More so, tapping into readily available geothermal energy means fewer blackouts. But what has our government done to secure loans from China? One answer can be found in news reports published last week where small scale Nairobi traders are finding their businesses threatened by an influx of Chinese traders.

More answers can be found in the commission and construction of Eastland Hotel near Yaya Centre, Beijing Road off Mombasa Road and Great Wall Apartments on said road just to mention a few Chinese-owned developments. These are developments a team of savvy Kenyan millionaires could have teamed up to do as they always have, but now there’s competition from Chinese businesses for the same land and opportunity. Last year a Chinese firm beat local firms to win one of only two tenders to handle local digital TV.

How?

As is the case with most foreign loans, our government has had to pledge something in return to China for their cash generosity. In Kenya’s case it’s been to make it easier for Chinese businesses and nationals to make direct investments here and compete with you; the little man. It’s the colonialism of the day – rich foreign nations offer African countries huge easy “development” loans on condition that the African country pledges its natural resources, its markets or its labor. When the African country needs more money or can’t pay the debt (which they never can), more resources are pledged and so on. It’s a perpetual shafting, and that’s why the Chinese increasing presence in Kenya is unsettling.

Make no mistake, Chinese can see the vast opportunity for business here, more than Kenyans can. They aren’t here to play nice. With the government too focused on Vision 2030, a misguided goal, they are allowing local business opportunity to fall in the hands of whoever loans them the easiest money. In this case, it’s obviously China. GDP comes first, consequences later.

Cracks are already beginning to show, as with Meru where two Chinese were almost lynched then arrested for undercutting local phone sellers with fake Chinese imports. Imagine that! Poor Kenyans trying to support their families and then Chinese nationals threaten their livelihood? I understand their anger. Such Chinese hawkers reportedly jump their tourist VISA limits with no consequences. If anything they probably get encouraged by prior success stories from their predecessors, who got in on encouragement by the Kenyan government.

During the launch of the Southern Bypass in March President Kibaki was quoted saying, “The Chinese are good people and should feel free to come around.” Adding, “We urge more of them to come and pursue their interests here.” Wow. An unemployment rate of 40% and we are offering our scarce market to the highest bidder? Seems  the government hasn’t taken seriously the threat of local Chinese competition. Perhaps they could only be waking up now. Regardless, China just pledged Kenya another 1.7 trillion shilling loan last month to add to our 1.6 trillion shilling public debt which our taxes pay for.

Based on what has happened over the past decade since our government started “looking east” for funding, we should only be bracing ourselves for a more competitive economic situation. The same opportunities for business can only be spread so thin in a country that already makes it so hard for locals to do business. Small traders in Nairobi are already feeling the pinch and took to the streets last Thursday in protest.  You who diligently saves some of your salary every month to someday own a property or business into retirement might not find this as easy to do. A foreigner could just beat you there.