Kenya lobbies for more UK investments, despite Brexit debacle

Nairobi is lobbying UK firms to continue investing in Kenya, despite the continual Brexit chaos currently rocking London.

Kenya’s High Commissioner to the United Kingdom, Manoah Esipisu says besides assurances that Kenyan goods will continue accessing the UK market, Nairobi is banking on recent UK assurances to ask firms to raise their investments in Kenya.

The UK, which voted in a referendum to leave the European Union, is currently expected to leave the bloc by October 31.

But whether it leaves with a written agreement to manage the transition or not (No Deal) has raised political temperatures.

Mr Esipisu said he had received assurances from Mr Conor Burns, UK Minister of State for International Trade that Kenya will continue to access the duty-free, quota-free markets in the UK, as has been part of EU regime.

In longer term, he said, Nairobi and London will sign a transition agreement to ensure that Kenyan flower sellers, for instance, continue to access the UK markets without subject to duty.

But the new focus will also be on harnessing more UK investments into Kenya. With the announced UK Export Finance and Commonwealth Development Corporation portfolio of £4.5billion for investments, the Kenyan envoy says it could help Kenya’s Big Four Agenda.

“There are significant opportunities for continued investment by British companies, both as project funding and Foreign Direct Investment,” said Mr Esipisu after the meeting in London.

“We can look to bed down some of these opportunities and get them across the finishing line in January at the UK-Africa summit,” Esipisu added, referring to the Africa Investment Summit in January 2020.

The conference, organisers say, “provides further impetus to help deliver a dynamic business environment that welcomes international trade and investment.”

The Big Four Agenda, President Uhuru Kenyatta’s legacy project for affordable housing, affordable Healthcare, increased manufacturing and food security; has recently faced funding challenges, leading to the government to seek support from the private investors.

On Tuesday, Jane Marriott, the new UK High Commissioner to Nairobi said her government was willing to venture into the Big Four, as well as deliver a strengthened strategic partnership” between Kenya and the UK, after the London exits the European Union.

Some 300 UK companies operate in Kenya, making London the biggest foreign investor in Kenya.

Trade value reached Sh140 billion, with Kenya exporting cut flowers and other fresh produce.

In July, the UK Department for International Trade announced it would give a portion of its £14bn aid budget to help developing countries learn from UK expertise on trade deals and attracting foreign investment.

UK, the department said, was keen on “sustainable development” and help poor nations “trade their way out of poverty,” signalling departure from annual aid programmes.

The funding is to train locals on investment attraction, and to “develop some of those attributes that helped us get investment into the UK and helps them get investment on a stable basis.”

On Tuesday the UK announced increased funding for trade and diplomatic outreach globally, and new budgets would cover posts in Nairobi dedicated to emerging opportunities wrought by the Big Four.

Mr Esipisu was accompanied by Anne Kamau, in charge of the Economic Section of the Mission.