Chinese Steel Maker Rongtai, Suspended by KEBS over Substandard Bars, Stages Comeback in Ruto-Beijing Deals – Kenyan Wall Street

China’s Rongtai Steel Co. Ltd. will pour KSh 12.9 billion into expanding its Kenyan operations, as part of Beijing’s investment deals inked during President William Ruto’s state visit.

• Under the agreements, manufacturing captured the single‑largest share of the KSh 126 billion investments, at KSh 41.4 billion.
• Rongtai’s plans will include the expansion of its product lines in Lukenya, anticipating the rising demand for affordable housing projects and other infrastructural projects in the region.
• In January, the Kenya Bureau of Standards (KEBS) suspended manufacturing permits of the Chinese steel manufacturer, citing the poor quality of its bars.

“As part of the enforcement measures, KEBS has seized substandard products from the manufacturer’s premises. We have also ordered a recall of all distributed substandard products from the market,” KEBS said in a statement two months ago.

KEBS had also issued an advisory warning the public against buying Rongtai’s ribbed bars for construction, adding that they would weaken structural integrity. The steel company opened shop in Kenya in September 2023 after a KSh 3.9 billion investment. The government has seemingly changed track with the firm, tapping it to potentially promote over 3,000 jobs after its slated expansion.

The Other Deals

The manufacturing sector deals signed by President William Ruto also include China Wu Yi, which secured a parallel US$150 million pledge to localize production of pre‑cast concrete components. Chongqing Shangcheng Apparel and a new‑entrant — Anhui Jiubao Electronic Technology — committed a combined $70 million to apparel and smart‑transport ventures respectively.

The Agriculture sector drew KSh 55.6 billion, with Shandong Jialejia Agriculture & Animal Husbandry planning a 100‑acre poultry complex in Kajiado County—targeting 500,000 layers and 500 direct jobs — marking its first foray outside China. Biotechnology conglomerate Zonken Group will channel US$400 million into large‑scale aloe, apple and grape cultivation across 372 acres in Baringo County, banking on the rising demand for botanical extracts.

Tourism rounded out the package with a KSh 29.7 billion commitment from Hunan Conference Exhibition Group and Huatian Hotel Management to develop a branded resort portfolio aimed at rising Chinese and Gulf visitor in-flows.

Kenyan officials said the funding for these China-led projects will be a mix of corporate equity, concessional credit and public‑private partnerships to be finalized over the next 18 months. The deals come as Nairobi seeks to broaden Chinese engagement beyond headline infrastructure such as the Standard Gauge Railway to job‑intensive, value‑adding sectors.

President Ruto — on his third trip to China since taking office — met President Xi Jinping to press for softer debt terms on legacy projects and to court investors. Beijing is also keen to retain its integral trade position in Kenya, as it continues leading as the East African nation’s biggest source of imports.