Kenya and US to Seal Strategic Trade and Investment Partnership
In a bid to boost trade and investment between Kenya and USA, the two countries announced that ‘significant progress’ has been made regarding the negotiations towards Strategic Trade and Investment Partnership (STIP).
Indeed, the US Trade Representative and Kenya’s Cabinet Secretary for Investment, Trade and Industry are expecting to arrive at a conclusion by the end of 2024.
The key economic sectors identified for economic cooperation between Kenya and USA are:
- Infrastructure
- Agriculture
- Digital Economy
- Green Mobility
- Clean Energy
- Affordable Housing
In support of reinforcing the relationship, the US Development Finance Corporation (DFC) will open an office in Nairobi.
DFC approved a USD 180 million loan to Acorn, a real estate developer, which constructs and manages affordable student housing in Kenya. The DFC move will catalyze the mobilization of up to USD 360 million of investment in green housing projects.
Recently, DFC also provided a USD 10 million second loss guarantee to African Fertilizer and Agribusiness Partnership to facilitate sale of fertilizers on credit to SME involved in the supply of agri-inputs. The expected outcome is to bring in an extra USD 360 million in fertilizer sales within the next three years, and will improve Food Production and foster #FoodSecurity.
As part of its commitment to #WomenEmpowerment and #ClimateAction, DFC is providing a USD 10 million load to Kentegra Biotech to build a new factory to scale up its production capacity of pyrethrum extract, which is a key ingredient in organic pesticides.
The loan will allow women farmers to receive training, higher and more predictable prices for pyrethrum cultivation. It is worth recalling that USTDA previously provided a grant of USD 660,000 for a feasibility study for the expansion of the pyrethrum production facility.
As another example of another big success story, the Coca Cola company is stepping up its commitment the Kenyan economy. As a matter of fact, during the state visit of Kenyan President Rutto in the US, a visit to the Coca Cola HQ in Atlanta was on the itinerary.
Coca Cola has been in Kenya for 70 years and has supported the government of Kenya to enhance its drought response, the clean water supply, and the supply chain to distribute vaccines during the COVID pandemic.
President Ruto witnessed the signing of a new Framework Agreement with Coca Cola to expand the company operations to cover mango juice production and plastic recycling. Coca Cola is investing another USD 175 million for the expansion, showing its confidence in the Kenyan economy.
Kenyan ladies’ fashion brand Vivo Fashion also announced the opening of its first retail store in Atlanta. Vivo Fashion is part of the growing apparel ecosystem in Kenya which benefits from preferential access to the US market thanks to #AGOA.