The United Kingdom and Kenya have agreed on a $10 billion (Sh1.3 trillion) direct investment partnership for the people of Kenya. The Economic Partnership Agreement (EPA) was signed in December 2020 and will be used to facilitate investment in Kenya in 2023.
Following Brexit, the agreement lays the foundation for continuous trade between Kenya and the UK, as well as duty-free access to the UK market for Kenyan exports, notably those relating to horticulture.
One of the key goals of the meeting will be to provide comprehensive duty-free and quota-free market access arrangements for goods originating in the EAC Partner States into the UK market on a secure, long-term, and predictable basis.
Kenya wants to preserve and improve market access conditions in order to fully benefit from the EPA.
Kenya’s CS Moses Kuria will propose to UK investors bankable investment options worth $18 billion (or around Sh2.3 trillion) that have previously been packaged by the Kenya Investment Authority.
An excerpt from the statement from the Ministry of Investments Trade and Industry reads; “EPA provides a good framework for strengthening the strategic cooperation between Kenya and the UK in the areas of trade, investment, research, innovation & development at both government and private sector level.”
The meeting will be used to explore strategies to strengthen the two countries’ economic connections and mutual prosperity.
According to the UK Department of Commerce and Trade, overall trade in goods and services between the UK and Kenya (imports plus exports) was £1.1 billion (Sh154 billion) in the four quarters running up to the end of Q3 2022.
Total UK exports to Kenya during the period reached £521 million (Sh73.2 billion), a decline of 2.4 percent or £13 million from the four quarters before the end of Q3 2021. (Sh1.8 billion).
Kenya and the UK have begun collaborating on market access and business environment concerns through the EPA as a result of conversations in March 2022 and the trade and business environment roadshow in the UK.
Kuria, who will be heading the team to the discussions in London, will be joined by Kisumu Governor Peter Anyang Nyong’o.
As part of the four-day investor engagement, the delegations from the two countries will witness the signing of an investment agreement worth Sh. 30 billion between United Green and the County government of Kisumu.
As part of increased attempts to strengthen trade and investment relations between the two countries, the British government has so far contributed millions of pounds in support to Kenya.
Fostering and developing commercial ties between Kenya and the UK will be the forum’s main objective.
The UK is ready to help Kenyan exporters of agricultural produce to the UK, which are currently worth over £300 million annually, by increasing UK investment in value addition activities in Kenya and supporting the “Made in Kenya” brand (Sh46 billion).
The forum is being hosted through a Ministerial Council gathering on the Economic Partnership Agreement slated for March 21 in London.
Senior administrators and business leaders of different relevant government agencies are among the participants, together with other senior government and corporate officials from Kenya, the UK, and other nations.
