India advances Sh10.5bn loan for Rivatex expansion

Politics and policy

President Uhuru Kenyatta holds talks with the outgoing India's High Commissioner to Kenya Mr Yogeshwar Sharma at State House, Nairobi. PHOTO | PSCU 

By RAWLINGS OTINI

In Summary

• To address trade imbalance between the two countries, which is in favour of India, the ambassador called on Kenyan businesses to look into ways of producing more quality goods that can access the country’s large market.
• Mr Sharma was speaking on Thursday at State House, Nairobi, when three outgoing ambassadors Mohmeed Saeed Al Shakarchi of Iraq and Malek Hossein Gizvad of Iran and Yogeshwar Sharma of India bid farewell to President Uhuru Kenyatta.
• The President said that Kenya and India have long-standing bilateral and cultural relations which need to be further deepened for the benefit of the two nations.

The government of India has approved a Sh10.5 billion loan to help in the expansion of Rivatex East Africa, which is managed by Moi University.

The Indian High Commissioner Yogeshwar Sharma said his country has approved $100 million (Sh10.5 billion) to help in expanding operations of the textile firm.

Mr Sharma was speaking on Thursday at State House, Nairobi, when three outgoing ambassadors Mohmeed Saeed Al Shakarchi of Iraq and Malek Hossein Gizvad of Iran and Yogeshwar Sharma of India bid farewell to President Uhuru Kenyatta.

READ: Textile industry risks collapse on high power costs

Also read: Sh680m Treasury boost for Rivatex expansion

The Indian envoy also said his government has already approved a Sh3.1 billion ($30 million) soft loan through the Industrial Development Bank to be used in developing small and medium enterprises.

The High commissioner expressed India’s interest in Kenya’s developing geothermal energy sector, adding that his government is in the process of approving a Sh21 billion ($200 million) funding for the sector.

To address trade imbalance between the two countries, which is in favour of India, the ambassador called on Kenyan businesses to look into ways of producing more quality goods that can access the country’s large market.

GENERIC DRUGS

President Kenyatta said although Indian manufacturing companies intend to freeze the production of generic drugs, it would be prudent for them to consider partnering with African nations with a view of continuing production for the continent.

“Many victims of HIV/AIDS have really been helped by these generic drugs. Kenya is willing to partner with the drugs companies so as to continue saving more lives not only in our country but in the whole African continent,” said President Kenyatta. 

The President said that Kenya and India have long-standing bilateral and cultural relations which need to be further deepened for the benefit of the two nations.

Bidding farewell to the Iraq and Iranian envoys, Mr Kenyatta said Kenya and the two middle east countries need to partner on countering terrorism.

He said terror is a global challenge that requires countries to have a common strategy, thinking and approach to deal with extremist groups.

He said Kenya has much to learn from the two countries, especially on the oil and gas industry.