Kenya and Japan have embarked on industrial policy dialogue to balance trade between the two nations.
The balance of trade between the two countries is currently tilted in favour of Japan due to the high value of imports. Kenya’s imports from Japan were valued at USD 892.3 million in 2021 while the value of Kenya’s exports to Japan stood at USD 61.3 million in 2021 and has been increasing on an average rate of 11 per cent per year between 2017 and 2021.
Kenya’s principal export product to Japan in 2021 was Titanium ores and concentrates, accounting for 29.6 per cent of Kenya’s exports to the country. Other key export products include Coffee (15.3 per cent), Waste and scrap, of copper (15.2 per cent) and Cut flowers and flower buds (14.3 per cent).
The top five export products constituted 88.1 per cent of Kenya’s total exports to Japan indicating moderately high concentration of the export basket.
In a bilateral meeting between Kenya and Japan held last week in Osaka, Rebecca Miano, the Cabinet Secretary for Ministry of Investments, Trade and Industry and her Japanese Counterpart, Yasutoshi Nishimura, the Minister Ministry of Economy, Trade and Industry Japan, signed a deal to Initiate Industrial Policy Dialogue (IPD).
The Japan-Kenya bilateral meeting was held on the sidelines of Outreach Session of G7 Trade Ministers’ Meeting to be held in Sakai, Osaka, Japan. The IPD will indicate the direction of industrial collaboration that will contribute to strengthening economic relation between Kenya and Japan and provide for identifying and discussing cooperation areas that may become points of discussion in the future and support the mutually beneficial relation between Kenya and Japan.
CS Miano observed that globally, Africa features favourably as the next frontier for investments and Kenya stood strategically for Japan as a reliable partner, to manufacture for the African continent and the world in general.
The two Ministers agreed to regularly engage and continue to champion the cause for investments, trade and industry for the mutual benefits of the two countries and their peoples.
“I have no doubt that the partnership being championed by our two ministries – the Ministry of Economy, Trade and Industry 7 (METI) Japan and the Ministry of Investments, Trade and Industry (MITI) carries much promise in opening more opportunities for our people,” said Miano.
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