President Uhuru Kenyatta during a question and answer session at the
official opening of the Kenya-US Trade Conference at the United Nation
Complex, Gigiri, Nairobi. Photo | Samuel Miring'u | NMG
Summary
- About 12 deals worth more than $100 million (Sh10 billion) were signed on the second day of the three-day official visit by 60 US business executives.
- Most of the deals were negotiated during an economic summit that the American Chamber of Commerce held in Nairobi.
- The US mission, led by Under-Secretary for Commerce Gilbert Kaplan, has been scouting for investment opportunities in Kenya.
Kenya yesterday signed multi-billion shilling partnership
agreements with the US government and companies – the majority of them
targeting President Uhuru Kenyatta’s growth pillars commonly known as
the ‘Big Four’.
About 12 deals worth more than $100
million (Sh10 billion) were signed on the second day of the three-day
official visit by 60 US business executives from the US Presidential
Advisory Council on Doing Business in Africa.
Most of
the deals were negotiated during an economic summit that the American
Chamber of Commerce held in Nairobi and diplomats said they are meant to
show Nairobi’s high ranking in President Donald Trump’s economic agenda
for Africa.
The US mission, led by Under-Secretary for
Commerce Gilbert Kaplan, has been scouting for investment opportunities
in Kenya with a key focus on priority sectors for Mr Kenyatta’s last
term in office ending 2022.
Six of the 12 agreements were signed during the Kenya-US summit
at Nairobi’s United Nations Complex and the remainder left for a later
date, Trade principal secretary Chris Kiptoo said.
Ministry
of Health signed a $20 million (Sh2 billion) agreement with Medtronic
that will see a US private firm set up medical dialysis centres in
Kenya, while the Ministry of Energy reached an agreement with USAid
Power Africa to support the supply of electricity to every Kenyan by
2022 through undisclosed grants.
The USAid grants will be channelled through the Kenya Electricity Transmission Company (Ketraco), Kenya Power
and the Energy Regulatory Commission.
Bottom-tier
lender Victoria Commercial Bank also reached an agreement for a $10
million (Sh1 billion) credit line, guaranteed by US government-owned
OPIC, for on-lending to the SMEs.
Also signed was a
$1.3 million (Sh130 million) deal between US energy company Tesla and
Mettle OfGen for 1,260 kilowatt kWh battery system to be installed at
the Serena Safari Lodge in Amboseli National Park, the largest off-grid
solar and battery system in East Africa.
Kenya Tea
Development Agency (KTDA), which manages farms for small-scale tea
farmers, also signed $772,615 grant with US Trade & Development
Agency (USTDA) for a feasibility study on a solar and battery storage
project.
Transparent environment
Mr
Kenyatta, who witnessed the signing of the deals, pledged to create a
transparent and accountable business operating environment for
investors.
The President said Kenya was working to
improve trade ties with her peers in the East African Community to
ensure that investors in the Big Four sectors have access to
neighbouring countries such Tanzania, Uganda and Rwanda.
"Given
our long and well-established relationship, we can do more together. I
invite the US Companies to walk with us on the Big 4 journey,” he said.
The
head of the US delegation said the US investors were keen on East
Africa’s roads, energy and financial services sectors with Nairobi as
the hub.
“Kenya is first on the list of our priority countries in Africa,” Mr Kaplan said.
Trade between Kenya nd the US was stood at Sh104 billion last year, making US the Seventh largest trading partner.
Trade between Kenya nd the US was stood at Sh104 billion last year, making US the Seventh largest trading partner.
Mr
Kenyatta has allocated a big chunk of public resources to the Big Four
Plan, which covers food and nutrition, manufacturing, universal
healthcare and affordable and their enablers.
The plan,
which requires heavy private sector investment, aims at ensuring access
to medical services by all Kenyans and creating at least 800,000 new
jobs for the youth in the manufacturing sector.
The
plan is also targeted at enhancing food production and construction of
at least 500,000 affordable housing units in major urban centres such as
Nairobi, Mombasa, Kisumu, Nakuru and Eldoret.
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