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Nairobi, April 28, 2006

President Mwai Kibaki and Chinese President Hu Jintao toss in honour of his State visit during a banquet at State House, Nairobi.

President Kibaki urges China to support developing countries

President Kibaki has lauded China's sympathetic outlook towards developing countries and expressed hope that China will continue to use its growing economic strength to support developing countries.

He acknowledged the economic reforms in China noting that the country will have considerable influence on the world's economic stage in the years to come.

"It is our wish that your country will continue to use its growing economic strength to support developing countries, "President Kibaki said.

President Kibaki was Speaking at State House Nairobi during a State banquet he and the First Lady Lucy Kibaki hosted in honour of the visiting Chinese President Hu Jintao and First Lady Liu Yongqing.

The President at the same time said that Kenya and China are discussing ways of bridging the huge trade imbalance through increased exports from Kenya.

Noting that the volume of trade between the two countries has recorded remarkable improvements, President Kibaki observed that Kenya's exports to China have increased from shs.375 million in 2002, to more than shs. 836 million in 2004 while imports has increased from 6 billion to 13 billion in the same period.

"In spite of this increase there is immense potential that remains to be exploited in trade and other areas of bilateral cooperation," he added.

Noting that members of delegations from the two countries had held fruitful bilateral talks today, he expressed confidence that the agreements signed and the financial assistance extended to Kenya will assist in the implementation of priority projects in the agreed sectors.

Saying that Kenya would continue to pursue mutually beneficial economic policies with China, President Kibaki encouraged Chinese investors to join in harnessing the enormous unexploited potential for the mutual benefit of the two countries.

He reiterated that the government was committed to deepening its cooperation with China in all spheres of development and commended China for pledging to increase educational support to developing countries, Kenya included.

Said the President," I also reiterate Kenya's gratitude for the continued assistance from your Government in sports, health, energy, education, roads, information and communications technology, human resource development and culture among other sectors."

In the tourist sector, President Kibaki noted, since China granted Kenya the approved tourist destination status for group tourists there was a steady increase in Chinese tourist arrivals in the country.

Said the President, "In the last one year tourist arrivals from China had grown by 32 percent."

President Kibaki also spoke on the Sino-Africa Cooperation saying the establishment of the forum of cooperation between China and Africa and the recently launched policy on Africa will no doubt enhance beneficial engagement between China and the African continent.

On regional issues, President Kibaki told President Jintao that the challenge facing Kenya as the current chair of the intergovernmental authority on development (IGAD) was to mitigate the effects of drought and search for lasting peace in the Sudan and Somalia.

"In search of durable peace in the region, IGAD member states have urged the United Nations to lift the arms embargo on Somalia. Likewise, we have emphasized the importance of implementation of disarmament, demobilization and reintegration programmes," he said.

On Sudan, President Kibaki called for continued efforts and support from the international community with the objective of giving impetus to peace process in the Sudan.

President Kibaki also spoke about the East African Community said the attainment of a common market and acceleration of efforts to achieve a political federation by 2010 was the community's current priorities.

On international issues President Kibaki said Kenya acknowledged China's support to the United Nations Environment programme (UNEP) and the UN/Habitat both of who have headquaters in Nairobi.

He reaffirmed Kenya's support for one China policy and the total reunification of China.

In reply President Hu Jintao said China was pursuing cooperation with Africa through a win-win development strategy that was mutually beneficial to both China and African countries.

He said, "China will continue to pursue its independent foreign policy of peace, the path of peaceful development and the opening up strategy featuring mutual benefit and win-win results."

The Chinese leader recalled that last September on the sidelines of the 60th. UN summit China put forward a five point proposal on assisting developing countries to benefit from a number of concessions including zero-tariff on some of their exports, more aid, debt reduction and exemption to heavily indebted poor countries among other measures.

He emphasized that China is stepping up implementation of these measures, which are primarily meant to serve the interests of African countries.

President Jintao said China is ready to work with Kenya and carry forward the traditional friendship, advance strategic partnership and create a better future for China-Kenya friendly relations.

He acknowledge Kenya's leading role in this region, saying is an important country in Africa playing an active role in regional and international affairs.

"Kenya has been actively engaged in African affairs in recent years, making continues effort to facilitate the peace process in Somali and Sudan and serving as a crucial force in maintaining regional peace and stability," he noted.

The Vice-president Moody Awori, cabinet Ministers and senior Kenyan and Chinese offiocials, attended the banquet.