The Kenya-United States Strategic Trade and Investment Partnership

Nairobi, Kenya - August 9, 2024 Kenya and the United States are taking significant steps forward in bolstering trade and investment relations. The two nations have agreed on several key chapters crucial for advancing mutual economic interests. Kenya and the United States are enhancing their economic relationship through The African Growth and Opportunity Act (AGOA), which according to the Cabinet Secretary Ministry of Investments, Trade and Industry Hon. Salim Mvurya, the initiative aims to bolster trade and investment between the two nations, providing a more predictable and mutually beneficial environment. 

Speaking today after an engagement with AGOA Assistant US Trade Representative in Nairobi, Hon. Mvurya said by fostering closer economic ties, a team from Kenya and another team from the United States under the Strategic Trade and Investment Partnership (STIP) are in the process of negotiating on the various chapters of the agreements to promote sustainable development in both countries.

Cabinet Secretary Ministry of Trade, Investments and Industry Salim Mvurya and PS Alfred Ombundo addressing members of the press today at NSSF Building in Nairobi. Photo by John Toris 

"Discussions on agriculture aim to improve the ease with which agricultural products can be exported on a two-way basis," stated PS Alfred Ombundo, emphasizing the potential benefits for both nations' farmers and agribusinesses.

The agreement also focuses on enhancing trade facilitation between the countries, ensuring smoother and more efficient trade processes. "Streamlining trade facilitation is essential for reducing barriers and increasing the flow of goods," Ombundo explained.

Principal Secretary Ministry of Trade, Investments and Industry Alfred Ombundo addressing members of the press today at NSSF Building in Nairobi. Photo by John Toris 

Investment is another critical area of focus. "We want to make sure the investment environment is very attractive for US investors," Ombundo said. The agreement includes provisions to support small, micro, and medium enterprises (SMMEs), recognizing their vital role in economic growth. "Supporting SMMEs is key to fostering innovation and creating jobs," he added.

A significant highlight of the agreement is the focus on digital trade. "We aim to ensure that sectors like digital trade have commonality in terms of rules, regulations, and objectives," Ombundo noted. This alignment is expected to promote growth in the digital economy, benefiting businesses and consumers in both countries.

This comprehensive agreement marks a new era in Kenya-US economic relations, promising to enhance trade, investment, and economic collaboration. The ongoing discussions reflect a commitment to creating a more prosperous future for both nations.

On February 6, 2020, former US President Trump announced plans to start trade agreement negotiations with the Republic of Kenya after meeting with former Kenyan President Uhuru Kenyatta at the White House. This announcement coincided with the third meeting of the US-Kenya Trade and Investment Working Group in Washington. This group, created by Trump and Kenyatta in August 2018, aimed to strengthen bilateral trade relations.

Under the Biden administration, the nature of this bilateral agreement evolved into what is now known as a Strategic Trade and Investment Partnership (STIP), rather than a traditional trade agreement. The STIP focuses less on traditional market access issues like reciprocal tariff reductions and more on areas such as investment and inclusive growth to benefit workers and businesses.


By John Toris

torisjohn4@gmail.com









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