The Ministry of Investments, Trade and Industry has held a trade and investment forum between the United Arabs Emirates (UAE) and Kenya, a trade mission aimed at boosting business and investments relations, opening up more opportunities for businesses to thrive in Kenya and the UAE.
Speaking on Monday at the forum, Investments, Trade and Industry Cabinet Secretary (CS) Salim Mvurya said that the Trade Mission platform aimed at discussing and exploring opportunities of boosting business and investments relations.
He noted that such a forum would not have been possible without the warm and cordial relations existing between the two countries as evidenced by continued cooperation and partnership on issues of mutually beneficial interest.
“Our diplomatic relations commenced in 1982 when Kenya opened its Embassy in the UAE which the latter reciprocated by establishing its embassy in Nairobi in 2012. Over the years, the UAE has become an important political, economic and social partner to Kenya,” he said, adding that the two countries have signed several instruments and agreements for cooperation to strengthen and develop economic and commercial ties.
The CS emphasized on the economic and trade ties noting that UAE, ranked 6th amongst Kenya trading partners, would be prioritized as a key export market that would continue to forge close working relations with the UAE business community.
“Trade trends between the two parties indicate that two-way trade grew by 169 percent over nine years from over Sh140 billion in 2013 to Sh383.68 billion in 2022. Kenya’s exports to UAE amounted to USD373.6 million and USD401.5 million in 2022 and 2023 respectively while imports from the UAE were valued at USD3.45 billion and USD 2.95 billion during the same period,” he said.
Furthermore, he said that the total trade between the two countries has been growing over the years from $1.9 million in 2010 to $3.83 billion in 2022. In 2022, Kenya’s exports to the UAE amounted to $373.68 million.
“In the same year, Kenya’s imports from the UAE were $3.46 million. The overall balance of trade is in favour of the UAE with Kenya experiencing a negative balance of trade to the tune of $3.08 billion,” he added.
Mvurya noted that Kenya’s main exports to the UAE included tea, mutton, fruits, vegetables and cut flowers while imports from UAE included petroleum oils and oils obtained from bituminous minerals and polymers of propylene in primary forms, telephone sets and cement clinker making the Kenya trades with UAE on a Most Favoured Nation (MFN) basis.
At the same time, he said that the country is committed to deepening and expanding bilateral trade and investment cooperation with UAE, terming the forum as a testament to deepen and expand the unique relationship.
“The two parties have been engaging over the past two years with the view to putting in place a long-term trading framework, the Kenya – UAE Comprehensive Economic Partnership Agreement, whose negotiation is at an advanced stage,” he stated.
The CS underscored that the private sector plays a critical role in driving economic transformation by accelerating investment, industrialization, economic activities and unleashing the potential through growing business opportunities.
Mvurya stated that the Kenyan government has formulated business friendly policies in order to support the growth of the private sector, calling upon the private and public sector to have continued cooperation in order to fulfill the mission.
“Kenya is a gateway to the Eastern and Central African Region and a regional hub that serves Africa, therefore investing in Kenya gives one a huge market since the market goes beyond the East African Community of over 220 million people to include the Common Market for Eastern and Southern Africa (COMESA) with a population of about 600 million people,” said Mvurya, adding that Tripartite Free Trade Area gives over 1.4 billion people access to a market.
He encouraged the UAE investors to consider investing in Kenya preferable areas including manufacturing, livestock development, tourism, energy, housing, infrastructure, building and construction, maritime and aviation services among others.
He applauded the growing confidence that UAE investors placed in Kenya as demonstrated by the continued cooperation between private sectors of the two countries.
Mvurya said that his Ministry encourages Business Associations and Councils to work together to enhance business engagements between the private sector in both countries.
“I believe this forum will serve as a practical and significant stride towards opening new markets that will encourage investments, trade, and transfer of technology between both countries,” said the CS.
He emphasized on a continuous collaboration and interactions at all levels with the overall objective of improving economic ties between Kenya and the UAE.
By Sharon Atieno
