The upcoming 4th AmCham Business Summit, slated for April 24th and 25th in Nairobi aims to bolster trade and investment ties between the U.S. and East Africa.
- •Structured around six key thematic areas including trade and investment, climate action, digital transformation, health and life sciences, sustainable finance, and opportunity and inclusion, the summit will host keynotes and panels led by business leaders and policymakers.
- •Among expected attendees are high-ranking government officials from Kenya and neighboring countries, alongside representatives from the U.S. government and private sector, including U.S. Secretary of Commerce Gina Raimondo who is leading a delegation exploring export and investment opportunities between the two regions.
- •In 2022, the United States emerged as Kenya’s largest export market, with approximately $890 million in goods exported to the U.S.
Additionally, the U.S. exported around $600 million in goods to Kenya, and this is expected to increase as the United States and Kenya negotiate a first-of-its-kind bilateral trade agreement known as the Strategic Trade and Investment Partnership (STIP).
We had the opportunity to speak with Maxwell Okello, CEO of the American Chamber of Commerce Kenya, to delve into the prospects and anticipations surrounding the forthcoming summit. Below are highlights from our conversation, edited for clarity.
Q&A with AmCham CEO
Kenyan Wall Street: Could you give us a brief overview of the upcoming AmCham Business Summit, including expectations and opportunities for attending business people and corporations?
Maxwell Okello: The 4th summit is focused on fostering dialogue around trade and investment relations between Kenya and the U.S. Structured around six thematic areas prioritized by both the private and government sectors, attendees can expect engaging discussions and insights into key sectors. Each thematic area will feature keynotes and panels led by thought leaders and policymakers, offering valuable opportunities for networking and collaboration.
Kenyan Wall Street: Who are the anticipated business leaders expected to attend the summit?
Maxwell Okello: President William Ruto will be the chief guest, joined by various Cabinet Secretaries and Principal Secretaries from Kenya, as well as government officials from neighboring countries like Uganda, Tanzania, Rwanda, and Ethiopia. On the U.S. side, high-level representation includes U.S. Secretary of Commerce Gina Raimondo and heads of various agencies such as the U.S. Trade Development Agency and PROSPER Africa. Additionally, business delegations from organizations like the U.S. Chamber in Washington and private investors will be in attendance.
Kenyan Wall Street: Building upon successes of previous summits, how does the American Chamber of Commerce (AmCham) plan to further enhance opportunities for commercial engagement at the 4th edition?
Maxwell Okello: We aim to catalyze commercial opportunities by facilitating business-to-business engagements and dialogue around policy and regulatory recommendations. The summit serves as a platform for forging new partnerships and deals, evidenced by the significant announcements and meetings recorded in previous years. We’re committed to surpassing these achievements and promoting a conducive business climate through policy pronouncements and reforms.
Kenyan Wall Street: The apparel sector has seen substantial growth in exports to the U.S., contributing significantly to Kenya’s economy. How will the summit address the evolving needs and challenges of this sector while exploring new avenues for trade diversification?
Maxwell Okello: The apparel sector, under the AGOA trade agreement, accounts for a significant portion of Kenya’s exports to the U.S. Efforts by U.S. Ambassador Meg Whitman have elevated bilateral relations, leading to increased investments and opportunities in Kenya. However, challenges remain, particularly in infrastructure readiness within export processing zones. Addressing these challenges and capitalizing on emerging opportunities will be a key focus of discussions at the summit, aiming to drive further growth and diversification in trade relations.
Kenyan Wall Street: The AGOA trade agreement is set to expire in September 2025. Could you shed light on the efforts to renew it and the potential impact on trade relations between the U.S. and Kenya?
Maxwell Okello: The impending expiration of AGOA in 2025 presents a significant challenge for the textile and apparel sector, which has greatly benefited from the agreement. There is currently a push to reauthorize AGOA, recognizing its positive impact on African economies, including Kenya. Renewing AGOA for an extended period is crucial for sustaining the benefits it has realized and ensuring continued growth in trade relations between the U.S. and Kenya.
Kenyan Wall Street: Regarding the U.S.-Kenya Strategic Trade and Investment Partnership (STIP) launched in 2022, what progress has been made especially given the upcoming meeting between President Biden and President Ruto in May?
Maxwell Okello: The U.S.-Kenya STIP is a major step towards establishing a rules-based system governing bilateral trade relations. Negotiations are ongoing across various aspects, including digital trade, agriculture, manufacturing, and SMEs. The outcomes of these negotiations are expected to result in high-standard commitments that address business climate issues and promote investment stability. Ultimately, the partnership aims to increase investment, foster sustainable economic growth, support SMEs, and promote regional integration, particularly in sectors like agriculture and the creative economy.
Kenyan Wall Street: Kenya has been successful in attracting FDI from the U.S., particularly in the tech sector. However, challenges such as unpredictable tax regimes persist. What measures is AmCham taking to ensure alignment between the government, investors, and startups in addressing these issues?
Maxwell Okello: The instability in the tax regime poses challenges not only to startups and multinationals but to all businesses operating in the country. AmCham has been advocating for a national tax policy to provide stability and predictability for businesses. Through engagements with Treasury and directly with State House, we’ve made progress in advancing this agenda, with the President himself pronouncing support for it. Implementing a national tax policy would be beneficial in creating the stability and predictability necessary for businesses to thrive and plan ahead effectively.
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