Kenya and India are negotiating a Sh32.2 billion (Usd250 million) loan facility to boost trade between the two nations, Investment, Trade and Industry CS Salim Mvurya has announced.
Mvurya revealed that the two countries have been discussing how they can expand trade activities and open up more areas of investment.
The CS further announced that India has already given Kenya a separate loan of Sh1.9 billion (Usd15 million) to support Micro, Small and Medium Enterprises (MSMEs).
“We have not concluded the discussions but we intend to use the Sh32.2 billion loan to boost the agriculture sector through value addition. If it goes through, Sh12.9 billion (Usd100 million) will go towards supporting County Aggregation and Industrial Parks. As of now, it is still a discussion,” Mvurya added.
The main objective of CAIP is to grow manufacturing and agro-industrial investments and enhance the competitiveness of the agriculture sector.
By providing a centralised facility for aggregation and processing of agricultural produce, the CAIPs are expected to enhance the competitiveness of local products in both domestic and international markets.
Speaking at a press conference at his office, Mvurya stated businesses that import machinery, equipment and raw materials from India will be given priority.
The CS announced the formation of the Joint Trade Committee which will spearhead efforts to boost trade and investments between the two countries.
He said the committee will hold its first meeting in two weeks.
“We want to assure India that we are excited about the deal and want to continue with the relations. In three years, exports to India have grown by 50 per cent,” he said.
Indian High Commissioner to Kenya Namgya Khampa said her country is keen to grow trade with Kenya.
“We will step up and find projects that strengthen our partnership," Khampa said.
"We are looking forward to see the advise the Joint Trade Committee will give on growing trade and investments between the two countries,” she said.
