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Obama Trip to Kenya Offers Rare Chance to Shore Up Economic Ties | Obama Trip to Kenya Offers Rare Chance to Shore Up Economic Ties |
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VOI, Kenya — After spending their days digging in the red-clay earth to build a railroad between Nairobi and the sprawling port city of Mombasa, the Chinese workers here retreat to metal trailers surrounded by barbed wire and armed guards. | VOI, Kenya — After spending their days digging in the red-clay earth to build a railroad between Nairobi and the sprawling port city of Mombasa, the Chinese workers here retreat to metal trailers surrounded by barbed wire and armed guards. |
Each morning as they file out and each evening as they trudge back, they are greeted by morale-boosting banners like the one hanging on the fence at this camp, which lies a few hours from Mombasa: “When you feel grateful, you become great, and eventually attract great things.” | Each morning as they file out and each evening as they trudge back, they are greeted by morale-boosting banners like the one hanging on the fence at this camp, which lies a few hours from Mombasa: “When you feel grateful, you become great, and eventually attract great things.” |
It is just one of scores of worker camps around the country. Roads, office buildings, schools and major infrastructure projects across Kenya have been built by the Chinese, a pattern repeated in many parts of the continent. | It is just one of scores of worker camps around the country. Roads, office buildings, schools and major infrastructure projects across Kenya have been built by the Chinese, a pattern repeated in many parts of the continent. |
Trade between China and Africa, valued at $222 billion in 2014, has been rising swiftly and is now about three times the amount of trade between the United States and the African continent, according to figures from the World Bank and the American government. | Trade between China and Africa, valued at $222 billion in 2014, has been rising swiftly and is now about three times the amount of trade between the United States and the African continent, according to figures from the World Bank and the American government. |
That is an imbalance President Obama hopes to start correcting. | That is an imbalance President Obama hopes to start correcting. |
Mr. Obama, speaking to the BBC, said China had been “able to funnel an awful lot of money into Africa, basically in exchange for raw materials that are being extracted from Africa.” | |
“What is certainly true is that the United States has to have a presence to promote the values that we care about,” he said. | |
Mr. Obama’s return to his father’s homeland on Friday is, of course, part of a presidential trip laden with great personal significance. Islamist extremism and security will also be a focus, given the growing threat Kenya faces from the Shabab, the Somali extremist group responsible for some 400 deaths there since 2011. | Mr. Obama’s return to his father’s homeland on Friday is, of course, part of a presidential trip laden with great personal significance. Islamist extremism and security will also be a focus, given the growing threat Kenya faces from the Shabab, the Somali extremist group responsible for some 400 deaths there since 2011. |
But Mr. Obama’s trip is also a unique opportunity to rebuild the strained relationship between Kenya and the United States, and central to accomplishing that will be shoring up the economic ties between the two nations. | But Mr. Obama’s trip is also a unique opportunity to rebuild the strained relationship between Kenya and the United States, and central to accomplishing that will be shoring up the economic ties between the two nations. |
Mr. Obama is in Kenya to play co-host to the first Global Entrepreneurship Summit in sub-Saharan Africa. Over the weekend, he is also expected to sign several “government to government” agreements making it easier for American companies to invest in Kenya. | Mr. Obama is in Kenya to play co-host to the first Global Entrepreneurship Summit in sub-Saharan Africa. Over the weekend, he is also expected to sign several “government to government” agreements making it easier for American companies to invest in Kenya. |
That could help shape a deal involving a consortium of private American companies that is under negotiation, potentially laying the groundwork for one of the largest Western investments in infrastructure projects in Kenya’s history. | That could help shape a deal involving a consortium of private American companies that is under negotiation, potentially laying the groundwork for one of the largest Western investments in infrastructure projects in Kenya’s history. |
“This is a mega-project and it will be a game changer for this region,” said Issa Timamy, the governor of Lamu County, along the Kenyan coast. | “This is a mega-project and it will be a game changer for this region,” said Issa Timamy, the governor of Lamu County, along the Kenyan coast. |
The economic thrust is part of a broader effort to strengthen a relationship that was forged during the Cold War but has become tense in recent years. | The economic thrust is part of a broader effort to strengthen a relationship that was forged during the Cold War but has become tense in recent years. |
In 2007, just before Mr. Obama took office, more than 1,000 people died and 600,000 people were displaced from their homes during election-related violence in Kenya. | In 2007, just before Mr. Obama took office, more than 1,000 people died and 600,000 people were displaced from their homes during election-related violence in Kenya. |
The current Kenyan president, Uhuru Kenyatta, was charged by the International Criminal Court with helping to orchestrate and finance the violence. | The current Kenyan president, Uhuru Kenyatta, was charged by the International Criminal Court with helping to orchestrate and finance the violence. |
When Mr. Kenyatta ran for president in 2013, American officials did not hold their tongues. The Obama administration’s top official for Africa at the time issued a veiled warning, reminding Kenyans that “choices have consequences.” | When Mr. Kenyatta ran for president in 2013, American officials did not hold their tongues. The Obama administration’s top official for Africa at the time issued a veiled warning, reminding Kenyans that “choices have consequences.” |
Kenyans took offense, interpreting the remark as an attempt to meddle, but Mr. Kenyatta won the election anyway. Indeed, some Kenyans, including Mr. Kenyatta’s running mate, William Ruto, suggested that the American remarks had backfired, giving them a jolt at the polls. | Kenyans took offense, interpreting the remark as an attempt to meddle, but Mr. Kenyatta won the election anyway. Indeed, some Kenyans, including Mr. Kenyatta’s running mate, William Ruto, suggested that the American remarks had backfired, giving them a jolt at the polls. |
“It was said that ‘choices have consequences,’ ” Mr. Ruto, who has also been charged by the international court with crimes against humanity, said at the inauguration. “And look at the consequences. We won in Round 1.” | |
When Mr. Kenyatta took office, he pointedly said it was time for Kenya to look east instead of west. He chose to go to Beijing and Moscow on his first trip out of the country. | When Mr. Kenyatta took office, he pointedly said it was time for Kenya to look east instead of west. He chose to go to Beijing and Moscow on his first trip out of the country. |
But circumstances have changed considerably since then. In September 2013, gunmen stormed a fancy shopping mall in Nairobi, killing dozens of civilians in an attack claimed by the Shabab on a gleaming symbol of Kenya’s prosperity. | But circumstances have changed considerably since then. In September 2013, gunmen stormed a fancy shopping mall in Nairobi, killing dozens of civilians in an attack claimed by the Shabab on a gleaming symbol of Kenya’s prosperity. |
The United States, viewing the siege as a direct threat to Western tourists and even as a possible prelude to similar attacks on American soil, helped investigate and continued its assaults on the Shabab in Somalia. | The United States, viewing the siege as a direct threat to Western tourists and even as a possible prelude to similar attacks on American soil, helped investigate and continued its assaults on the Shabab in Somalia. |
Then the charges against Mr. Kenyatta at the international court were dropped, frustrating human rights advocates but reducing the diplomatic tensions of working with a head of state who was on trial for crimes against humanity. | Then the charges against Mr. Kenyatta at the international court were dropped, frustrating human rights advocates but reducing the diplomatic tensions of working with a head of state who was on trial for crimes against humanity. |
The two countries are working closely to counter Islamist extremism, and Western officials say that the relationship is greatly improved. | The two countries are working closely to counter Islamist extremism, and Western officials say that the relationship is greatly improved. |
Now American officials and investors are focusing on another front: trying to compete with China in the race to do business in Africa. | Now American officials and investors are focusing on another front: trying to compete with China in the race to do business in Africa. |
The multibillion-dollar deal being negotiated, which involves major American companies like Bechtel, includes construction of a new port in Lamu, a pipeline to connect it with the oil fields of Kenya and Uganda, an 880-megawatt natural gas power plant, and a railway from the port that would connect to existing rails in Nairobi and then stretch to Ethiopia and South Sudan. | The multibillion-dollar deal being negotiated, which involves major American companies like Bechtel, includes construction of a new port in Lamu, a pipeline to connect it with the oil fields of Kenya and Uganda, an 880-megawatt natural gas power plant, and a railway from the port that would connect to existing rails in Nairobi and then stretch to Ethiopia and South Sudan. |
It would be an enormously complicated undertaking, and even people involved in the project cautioned that the deal is not done until it is formally signed. But a project of this scale would affect the lives of millions of people not just in Kenya, but across East Africa. | It would be an enormously complicated undertaking, and even people involved in the project cautioned that the deal is not done until it is formally signed. But a project of this scale would affect the lives of millions of people not just in Kenya, but across East Africa. |
The hope is that the deal will also provide a model for future cooperation by the American government, the private sector and developing nations on large-scale infrastructure projects. | The hope is that the deal will also provide a model for future cooperation by the American government, the private sector and developing nations on large-scale infrastructure projects. |
There have been months of fierce negotiations and strong competition from the Chinese, but Mr. Timamy, the governor of Lamu, said everything was in place for an announcement timed to coincide with Mr. Obama’s visit. | There have been months of fierce negotiations and strong competition from the Chinese, but Mr. Timamy, the governor of Lamu, said everything was in place for an announcement timed to coincide with Mr. Obama’s visit. |
“This shows the improvement in relations between Kenya and the U.S.,” he said. “For a while relations there — relations were a bit fraught. This is a new beginning for Kenya and our traditional ally, the U.S., and other Western countries.” | “This shows the improvement in relations between Kenya and the U.S.,” he said. “For a while relations there — relations were a bit fraught. This is a new beginning for Kenya and our traditional ally, the U.S., and other Western countries.” |
During Mr. Obama’s visit, large swaths of Nairobi will be shut down, and any street where he plans to travel will be closed for hours. An entire forest near the United Nations headquarters and the United States Embassy has been declared off limits. | During Mr. Obama’s visit, large swaths of Nairobi will be shut down, and any street where he plans to travel will be closed for hours. An entire forest near the United Nations headquarters and the United States Embassy has been declared off limits. |
An American warship is anchored just off the coast, near Mombasa, and fighter jets will be ready to take to the skies. A large cadre of Secret Service agents have been on the ground for weeks. | An American warship is anchored just off the coast, near Mombasa, and fighter jets will be ready to take to the skies. A large cadre of Secret Service agents have been on the ground for weeks. |
Benson Kibue, Nairobi’s police commander, told reporters that 12,000 police officers, around a fourth of the entire national force, would be deployed to the capital. | Benson Kibue, Nairobi’s police commander, told reporters that 12,000 police officers, around a fourth of the entire national force, would be deployed to the capital. |
Improving security in Kenya and the region has also been a central concern in the negotiations surrounding the new port, pipeline, rail and power plant project, often referred to as “the American package.” | Improving security in Kenya and the region has also been a central concern in the negotiations surrounding the new port, pipeline, rail and power plant project, often referred to as “the American package.” |
In April, an assault claimed by the Shabab on a Kenyan university in the town of Garissa left about 150 people dead. In June 2014, militants attacked in Lamu County, killing at least 60 people. | In April, an assault claimed by the Shabab on a Kenyan university in the town of Garissa left about 150 people dead. In June 2014, militants attacked in Lamu County, killing at least 60 people. |
Mr. Timamy was briefly detained by the police after the 2014 attack, but was soon released after it became clear that the charges against him were baseless and that his arrest was politically motivated. | Mr. Timamy was briefly detained by the police after the 2014 attack, but was soon released after it became clear that the charges against him were baseless and that his arrest was politically motivated. |
In an interview on Thursday, Mr. Timamy described the attack as “heinous.” He said that since it occurred, “security has been enhanced” and more soldiers have been dispatched to the region. | In an interview on Thursday, Mr. Timamy described the attack as “heinous.” He said that since it occurred, “security has been enhanced” and more soldiers have been dispatched to the region. |
“Right now the Kenyan government has started putting a fence between our area and Somalia,” he said, noting that there has not been another major attack in his area since then. | “Right now the Kenyan government has started putting a fence between our area and Somalia,” he said, noting that there has not been another major attack in his area since then. |
There is hope that investment in the rural communities will spur economic growth, diminishing the appeal of radicals. | There is hope that investment in the rural communities will spur economic growth, diminishing the appeal of radicals. |
Often, big projects in Africa have reaped windfalls for outside companies, with little return for residents. Mr. Timamy argued that through bitter experience, people here know better now. | Often, big projects in Africa have reaped windfalls for outside companies, with little return for residents. Mr. Timamy argued that through bitter experience, people here know better now. |
“This is not the Africa of the ’50s, ’60s, ’70s or even ’80s,” he said. | “This is not the Africa of the ’50s, ’60s, ’70s or even ’80s,” he said. |
The package includes elements intended to have a positive social impact through programs involving education, clean water and, ultimately, local employment. | The package includes elements intended to have a positive social impact through programs involving education, clean water and, ultimately, local employment. |
Part of the appeal of the project to the Kenyan government is that it will not require Kenya to invest any funds or take on debt. It is supposed to be financed entirely by the private sector. | Part of the appeal of the project to the Kenyan government is that it will not require Kenya to invest any funds or take on debt. It is supposed to be financed entirely by the private sector. |
The agreement, according to people familiar with the negotiations, would commit the Kenyan government to work with a Kenyan developer, Aeolus Kenya Ltd., and the international companies with whom it has signed letters of agreement. | The agreement, according to people familiar with the negotiations, would commit the Kenyan government to work with a Kenyan developer, Aeolus Kenya Ltd., and the international companies with whom it has signed letters of agreement. |
Gerrishon K. Ikiara, an economist at Nairobi University and a former permanent secretary to the minister of transport, said it was often much more complicated working with Western companies than with the Chinese. | Gerrishon K. Ikiara, an economist at Nairobi University and a former permanent secretary to the minister of transport, said it was often much more complicated working with Western companies than with the Chinese. |
“China does not concern themselves with a lot of local issues and politics,” he said. As a result, he said, deals can be negotiated relatively quickly. | “China does not concern themselves with a lot of local issues and politics,” he said. As a result, he said, deals can be negotiated relatively quickly. |
China, he said, also completes projects on time. | China, he said, also completes projects on time. |