KIAMBUI – Tatu City Special Economic Zone has formalized a partnership with the Kenya Guangdong General Chamber of Commerce, aimed at enhancing trade relations between Kenya and China.
According to Kenya News Agency, the developer of Tatu City, the agreement was signed in Guangzhou, Guangdong Province’s capital. This partnership is set to establish a bridge between Guangdong’s business community and Tatu City, facilitating a more efficient market entry for Chinese firms into Africa. Preston Mendenhall, Rendeavour’s Country Head, conveyed this information while addressing the media in Kiambu town on Thursday.
Mendenhall noted that Chinese businesses are some of the most engaged entities within the Tatu City SEZ, highlighting an uptick in investments from Chinese entrepreneurs seeking to diversify their manufacturing bases. He emphasized that Kenya, and specifically Tatu City, offers an ideal blend of readily available labor and strategic access to both the continental market of over a billion consumers and international markets.
Kin W. Xian, the Chairman of the Kenya Guangdong General Chamber of Commerce, expressed enthusiasm about the collaboration with Tatu City, reinforcing the chamber’s objective to foster economic cooperation, as well as trade and investment between Africa and Guangdong. Guangdong is recognized as a significant hub of economic activity within China, holding the second spot for exports to Kenya and leading in imports from the African nation. These rankings are based on data from the Massachusetts Institute of Technology (MIT) Observatory of Economic Complexity, which evaluates the intricacy and specialization of a country’s exports.
The announcement comes on the heels of President William Ruto’s participation in the 3rd Belt and Road Forum for International Cooperation in Beijing, where he secured 10 investment agreements with Chinese companies. Tatu City stands out as Kenya’s first operational Special Economic Zone, housing over 75 businesses from Kenya, the region, and beyond. It offers an advantageous tax regime, including reduced corporate taxes, exemption from import duties, zero-rated VAT, and absence of withholding tax.