Different members of Kenya’s private sector yesterday called for value addition in agriculture as one of the key components of the ongoing FTA negotiations between Kenya and the US. In a virtual Private Sector Dialogue hosted by the Corporate Council on Africa (CCA) and the Kenya Private Sector Alliance (KEPSA).
Quarterly balance of payments report by the Kenya National Bureau of Statistics shows that agricultural products account for the top two leading exports from the country, closely followed by apparel. In 2020 Q1, tea, and horticulture were the leading domestic exports at Ksh 34 billion and Ksh 35 billion, respectively.
‘”What we need to look at is to bring value to agricultural products into Kenya. Regarding coffee, we need to look at ways of processing the product in Kenya and bringing value in the country,” said., KEPSA Director Graham Shaw called for the establishment of coffee processing in the country to increase the value of coffee exports
Chairman of the Agriculture Sector Network, Dr. Bimal Kantaria, further emphasized Foreign Direct Investments (FDI) into the agricultural sector to facilitate value addition for horticulture and floriculture. Speaking in the virtual meeting, Kantaria called for access to the United States’ floriculture and horticulture markets, asking stakeholders to channel more funding into the sector.
Regulation is Pivotal to US-Kenya FTA Negotiations.
Speakers at the digital forum, US Ambassador to Kenya Kyle McCarter, said that regulation would form a pivotal part of the negotiations.
“We must promote good regulatory practices that encourage markers for goods and services. Investors are excited about an environment that guarantees success by following the rules.”
According to US players, regulation focusing on digital taxes, intellectual property, and corruption should form a vital part of the deal. Farid Fezoua, Africa CEO for GE said the company is “looking for the agreement to create a regulatory framework to align the US and Kenya to create the right impetus for on term investment prospects…There are specific elements like custom duties that we need to align to give confidence and predictability for companies like GE, to know how they can make investments in various sectors.”
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Ambassador McCarter called for intellectual property protection and enforcement to foster “growth and investment in the innovative and creative sectors that provide opportunities for both countries.
The President’s Deputy Chief of Staff Dr. Ruth Kagia assured investors from both sides that the terms of trade in the FTA negotiations will enhance transparency and predictability, attracting investments from the US and the world.
Currently, the two countries are still exchanging views on the agreement in ongoing FTA negotiations.
