SPEECH BY HIS EXCELLENCY HON. MWAI KIBAKI, C.G.H., M.P., PRESIDENT AND COMMANDER-IN-CHIEF OF THE ARMED FORCES OF THE REPUBLIC OF KENYA OCCASION DURING STATE BANQUET IN HONOUR OF H.E. HU JINTAO, PRESIDENT OF THE PEOPLE'S REPUBLIC OF CHINA AT STATE HOUSE, NAIROBI ON 28TH APRIL, 2006

Your Excellency, Hu Jintao, President of the People's Republic of China,

Your Excellency the First Lady of the Peoples Republic of China,

Excellencies,

Distinguished Ladies and Gentlemen,

On behalf of the Government and the people of Kenya, and indeed on my own behalf, it is a great pleasure for me to welcome Your Excellency, and your distinguished delegation to Kenya.

We are honoured by your visit to our country, which follows my successful visit to your great country last year. Kenya and the China enjoy warm and cordial relations. The existence of historical Chinese ancestry in the Island of Lamu for over 600 years, distinctively exemplifies deep roots that established a common heritage in our relations.
Indeed, Your Excellency and your delegation should feel very much at home while in Kenya.

Excellency,
Ladies and Gentlemen,

The spheres of cooperation between Kenya and China have continued to expand. The launch of China Radio International F.M. broadcasts in Nairobi this year and the establishment of the Confucius Institute at the University of Nairobi are significant milestones in our relations, which will indeed intensify interaction and understanding between the peoples of our two countries.

On bilateral trade, the volume of trade between our two countries has recorded remarkable improvements. The value of Kenya's exports to China has increased from 375 million Kenya Shillings in 2002, to more than 836 million Kenya Shillings in 2004. On the other hand, the value of imports from China has increased from 6 billion Kenya Shillings in 2002, to 13 billion Kenya Shillings in 2004.

I am glad that our two countries are discussing ways of bridging the huge trade imbalance, through increased exports from Kenya. In spite of this increase, there is immense potential that remains to be exploited in trade and other areas of bilateral cooperation.

In this regard, I am glad that this morning we held extremely fruitful bilateral talks during which we reaffirmed our commitment to further strengthen our relations. I am confident that the agreements signed between our two sides, are explicit indicators of our continued mutual commitment to realize even greater friendship and cooperation.

Indeed, the financial assistance extended to my Government during your current visit will assist in the implementation of our national development plan in the agreed sectors. We also look forward to further cooperation through renewal of the implementation of agreements on educational exchanges and cooperation.
My Government is committed to deepening its cooperation with China in areas of higher education and students exchange programmes.

I take this opportunity to commend China for hosting the China-Africa Education Ministers' Conference in November last year and for pledging to increase educational support to developing countries, Kenya included. 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.

Excellency,
Ladies and Gentlemen,

Kenya acknowledges the success of economic reforms in your country. Indeed, I believe that China will have considerable influence on the world's economic stage in the years to come. In this regard, we fully applaud China's sympathetic outlook towards developing countries. It is our wish that your country will continue to use its growing economic strength to support developing countries.

For example, there is much we in Africa can learn from China in areas of poverty reduction. Indeed the lifting of over 300 million Chinese people from the poverty bracket within a period of twenty years is a great achievement. These are vital lessons for the African continent, where the fight against poverty is the number one priority.

Your Government's successful bid to host the World Expo Summit in 2010 additionally attests to the growing strength of China in international trade and economics. In this connection, Kenya will continue to pursue mutually beneficial economic policies with China. For instance, there is great potential for increased cooperation between our countries especially in the transport sector.

The modernization and construction of ports, roads and railway lines are some of the areas in which Kenya has confidence in China's expertise. I would like to take this opportunity to encourage Chinese investors to join us in harnessing the enormous unexploited potential in these sectors for our mutual benefit.

Another area in which our two countries can collaborate closely, is in our growing tourism industry. Nature has blessed our country with breathtaking natural sceneries such as the Great Rift Valley, which I am pleased to know you will be seeing tomorrow. We also have a huge diversity of wildlife in their natural habitat.

As custodians of this wonderful heritage, we welcome visitors from around the world to enjoy these gifts of nature to mankind. I would like to thank your Government for facilitating the conclusion of the bilateral air services agreement during my visit to China last year. Kenya Airways now operates regular flights between Nairobi and Guangzhou.

This is an important step forward in boosting trade and tourism between our two countries. Indeed, since China granted Kenya the Approved Tourist Destination Status for group tourists, we are seeing a steady increase in Chinese tourist arrivals.

In the last one-year, for instance, tourist arrivals from China have grown by 32 percent. I wish to thank Your Excellency and your Government for implementing these measures which have increased the flow of Chinese tourists to our country.

I also take the opportunity to urge the people of China to visit Kenya and sample our magnificent natural and cultural heritage.

Excellency,

On African issues, Sino-Africa Cooperation has continued to positively develop over the years. The establishment of the Forum of Cooperation between China and Africa and your recently launched Policy on Africa, will no doubt enhance beneficial engagement between China and the African continent. The forth coming Beijing Summit will also provide the opportunity for China and Africa to collectively strengthen these relations.

On regional issues, Kenya assumed the chairmanship of the Intergovernmental Authority on Development (IGAD) last month. IGAD's current challenge is to mitigate the effects of drought and the search for lasting peace in the Sudan and Somalia. It is our hope that the establishment of a Regional Emergency Fund as agreed during the recent IGAD Summit, will help us fight famine in the Horn of Africa.

In the search for 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. The Transitional Federal Government of Somalia continues to require sustainable international assistance and support to enable it carry out its mandate of post conflict reconstruction.

With regard to Sudan, considerable progress has been made in implementing the Comprehensive Peace Agreement. We, however, call for continued efforts and support from the international community with the objective of giving impetus to the peace process in the Sudan.

Excellency,

During the recently held 7th Summit of East African Heads of State and Government, Kenya took over the chairmanship of the East African Community. I am pleased to note that the Community has made strides in realizing a Common Customs Union.

The attainment of a common market and the acceleration of our efforts to achieve a political federation by 2010 are our current priorities. As chairman of our regional body, I am keen to forge closer relations with the community's development partners and in particular, with China.

On international issues, our two countries continue to share similar positions on key issues of mutual interest. Kenya acknowledges China's support to the United Nations Environmental Programme and the UN/Habitat. Both organizations have their headquarters in Nairobi.

We are committed to holding close consultation with your Government on current issues of concern such as the United Nations reforms, the on-going negotiations at the World Trade Organization and the enhancement of international peace.

In conclusion, I wish to reaffirm Kenya's support for the 'One-China Policy' and the Total Reunification of China.

Your Excellency,
Distinguished Ladies and Gentlemen,
May I now request you all to be upstanding and to join me in toasting to the good health of His Excellency President Hu Jintao, to the excellent relations between Kenya and China and the prosperity of the people of China.
Thank You.