Kenya and the United States have signed multiple investment deals worth billions of dollars during President William Ruto’s state visit, the White House said in a statement.
- •Among the major highlights include the US support for the IMF’s ongoing program in Kenya, which has seen the Bretton Woods institution double its program financing to $4.4bn in four years.
- •The raft of deals will see the US government and its institutions invest millions of dollars into different sectors, including startups and government institutions.
The two countries have also been discussing a trade deal that is set to be signed by the end of 2024.
President Ruto is on a three-day state visit to the United States, the first such visit by an African leader in more than 15 years. The timing and prominence of the visit illustrates Washington’s geopolitical play, which has seen it firm up investments, direct support, as well as designating Kenya a non-NATO ally to boost military cooperation.
The deals, a mix of new programs and already existing ones, will see the US provide financing for Kenya’s programs through both the government and the private sector. They include boosting efforts to fight corruption, strengthening police reforms, as well as partnerships in health, education, and clean energy.
“Like President Ruto, I believe the future will be won by countries that unleash the full potential of their populations – including civil society, women, and young people,” US President Joe Biden said.
Investments
Among the investment announcements include a $175mn investment by CocaCola to expand its operations in Kenya over the next five years. Tech giant Microsoft will also invest $1bn in a data centre in Kenya, in partnership with UAE-based artificial intelligence company G42. Another tech giant, Google, has also announced that it will build a new fibre optic cable network anchored in Kenya and running through multiple countries on the continent before crossing the ocean to Australia.
“Both countries are partnering with the private sector to further strengthen these economic ties, including in the critical areas of clean energy technology, agriculture, and affordable housing,” the White House said.
The US, through its investment arm, the International Development Finance Corporation (DFC), has invested more than $200mn in total in multiple companies, with direct loans and equity investments.
- •It is invested in Hewa Tele, a company that supplies medical oxygen, with a $10million direct loan.
- •It provided similar amounts to BasiGo, which leases and sells electric buse and Roam Electric, which is assembling electric bikes in Nairobi.
- •Other beneficiaries of the direct loans is Mogo Auto Kenya ($10mn), and Ignitia AB ($1mn), a tropical weather forecasting service.
Other companies include real estate developer Acorn which received a $180 million loan, Pezesha Africa which received $500, 000, Keep IT cool ($500,000), African Fertiliser and Agribusiness Partnership, Inc ($10mn loss guarantee), and Kentegra Biotechnology ($10mn), and M-KOPA ($51 mn loan).
DFC also made $4million worth of equity investments in Kasha Global, a Kenya-based e-commerce company that provides personal care, health care, and beauty products to low-income women.
Kenya is also one of the East African countries set to benefit from a US$ 1.13 million grant meant to expand internet networks in the region. The program will facilitate affordable broadband internet access, as well as empowering internet service providers (ISPs) to capitalize on the investment.
“At the 2024 AmCham East Africa Business Summit, USTDA announced $1.2 million to address Kenya’s internet affordability gap,” the White House announced. “USTDA’s grant to the Wilken Group enables evaluation of the development of fiber optic infrastructure and a series of 5G-capable towers along the Meter Gauge Railway between the cities of Mombasa and Malaba.”