Kenya and the U.S. have resumed physical negotiations for a trade deal, aiming to finalise the agreement before 2025.
The Kenyan trade delegation, headed by the Trade Principal Secretary Alfred K’Ombudo, is in Washington D.C. for a one-week meeting that started on February 6 and will run until the 10th.
This is the first face-to-face discussion within the Strategic Trade and Investment Partnership (STIP) framework promoted by President William Ruto’s government. The Kenya-US STIP was initiated on July 14, 2022, with both nations agreeing to increase their cooperation.
The partnership aims to increase investment, promote sustainable and inclusive economic growth, benefit workers, consumers and businesses, including Micro, Small and Medium-sized Enterprises, and support African regional economic integrations.
Kenya’s Trade and Investment Cabinet Secretary – Moses Kuria
As the expiry of the African Growth and Opportunity Act (AGOA) in 2025 approaches, President William Ruto’s government is determined to secure a trade agreement with the United States.
The negotiations began in July 2020 during the presidencies of Donald Trump and Uhuru Kenyatta but have been hindered by administration changes in both countries and the Covid-19 pandemic. After Joe Biden’s administration reviewed part of the pact, fresh talks were initiated, with President William Ruto’s government prioritising the needs of Micro, Small, and Medium Enterprises.
The US Trade Representative, Katherine Tai, met with Kenya’s CS Kuria to discuss a win-win Strategic Trade and Investment Partnership. Both sides aim to expand bilateral trade, empower women and youth, and support MSMEs. The US seeks comprehensive market access for agricultural goods, transparent procurement processes, and protection of intellectual property rights.
The nation seeks to protect its industries and grow exports to tap at least 5% of the US market, earning the country over KES 2 trillion in export revenues annually. Moreover, Kenya’s exports to the US grew to KES 59.5 billion in 2021.
A trade agreement is expected to deepen the relationship and diversify trade away from China, Kenya’s largest import source. The Kenyan government aims to increase exports to 30% of the GDP by 2025 and manufacturing to 20% of the GDP by 2030.
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