WASHINGTON, May 28 (Reuters) – The United States and Kenya are poised to deepen their economic relationship with a fresh round of trade negotiations scheduled for next month. This development follows a series of significant business deals and strategic commitments aimed at enhancing cooperation between the two nations.
Kenyan President William Ruto’s latest jaunt to Washington was quite the milestone, as both nations unveiled blueprints to beef up collaborations in tech, security, and debt relief for Kenya. Addressing a group of business bigwigs, President Ruto spotlighted Kenya’s vow to cook up a more inviting stew for investors. “Investors are digging what they see in Kenya,” Ruto declared, promising to snip the red tape and smooth out business kinks in the country.
U.S. Commerce Secretary Gina Raimondo encouraged the business community to build on the momentum generated by the visit. “We cannot go home, feel excited for the weekend, and move on,” Raimondo said. “We’re all in on Africa, all in on Kenya. Let’s go make more deals together.”
The upcoming sixth round of in-person negotiations under the Strategic Trade and Investment Partnership (STIP) will be held in Mombasa from June 3 to 7. This follows the previous round in Washington earlier this month, signaling ongoing commitment to the partnership.
During his visit, President Ruto addressed concerns raised by Alphabet Inc.’s Google, ensuring streamlined operations and unveiling various tax incentives aimed at attracting foreign investment. Ruth Porat, Alphabet’s President and Chief Investment Officer, announced Google’s plans to increase its investment in Kenya, including a groundbreaking project to establish the first fiber optic route connecting Africa directly to Australia. This route will pass through South Africa before crossing the Indian Ocean to Australia, enhancing connectivity for the continent.
Ruto spotlighted Kenya’s grand dreams for its “Silicon Savannah,” zeroing in on the creation of e-mobility vehicles. “The Kenyan government, in its upcoming policy playbook, will axe all taxes for companies that roll out the first 100,000 two-wheelers and four-wheelers right here at home,” he proclaimed, highlighting the nation’s zeal for nurturing innovation and local manufacturing.
In line with these developments, the U.S. International Development Finance Corporation announced a $10 million direct loan to BasiGo, a Kenyan electric vehicle company. BasiGo specializes in leasing and selling electric buses to public transport operators in Kenya. Additionally, a $10 million loan was granted to Roam Electric, a Kenyan company dedicated to producing electric motorcycles in Nairobi.
A landmark deal was also signed on Friday between Kenya and Microsoft. This partnership will see the construction of a $1 billion, 1-gigawatt data center in Naivasha, powered by Microsoft Azure cloud services. This data center aims to offer cloud-based applications and enable the Kenyan government to migrate its data and services to secure, reliable platforms. Microsoft President Brad Smith announced that, under this partnership, the company plans to extend internet services to 20 million people in Kenya by next year.
These initiatives underscore the growing economic ties between the U.S. and Kenya, reflecting a shared vision for sustainable development and technological advancement. As both nations continue to forge stronger bonds, the future looks promising for enhanced trade and investment opportunities.
