Share
President Kenyatta embarks on 3-day visit to the UK
President Uhuru Kenyatta begun his 3 day visit to visit to London, with the aim to ink several economic and security deals on the back of the trade agreement Kenya signed in December with Britain to ensure an uninterrupted flow of goods between the two nations upon the UK’s exit from the European Union trading arrangements. The United Kingdom is expected to announce a $182.6 million new government and private investment into Big Four Projects, including affordable housing and manufacturing. Economic Analyst Odhiambo Ramogi joins CNBC Africa for more.
Wed, 28 Jul 2021 10:24:33 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The trade deal between Kenya and the UK presents opportunities for economic growth but also raises concerns about increased competition and the need for investment in infrastructure and capacity.
- President Kenyatta's legacy hinges on the successful implementation of the 'Big Four Agenda', with the $182.6 million investment from the UK playing a crucial role in achieving these goals.
- The visit underscores the importance of balancing trade partnerships to ensure mutual benefits and address the disparities in capitalization and market access between Kenyan and British firms.
President Uhuru Kenyatta has embarked on a three-day visit to London with the aim of solidifying economic and security agreements following the trade deal Kenya signed with Britain in December. This agreement ensures a smooth flow of goods between the two nations post-Brexit. The United Kingdom is set to announce a $182.6 million investment into Big Four Projects, including affordable housing and manufacturing. Economic Analyst Odhiambo Ramogi sheds light on the implications of this visit. President Kenyatta, in his capacity as the Chair of the Global Education Commission, is scheduled to meet with UK Prime Minister Boris Johnson and may engage in discussions with members of the Royal Family.
The trade deal signed between Kenya and the UK presents both opportunities and challenges for Kenya. While it strengthens the historical partnership between the two nations, there are concerns about increased competition from the UK that could potentially leave Kenyan businesses behind due to a lack of infrastructure and capacity. Odhiambo Ramogi emphasizes the importance of investment in order to level the playing field. Without substantial investment to bolster Kenya's capacity, the trade deal may predominantly benefit the UK, given the stark contrast in capitalization between Kenyan and British firms. The $182.6 million pledged by the UK, though significant, is dwarfed by the volume of imports from the UK to Kenya.
Ramogi highlights the need for a more substantial investment to ensure that Kenya can fully leverage the opportunities presented by the trade agreement. As Kenya primarily exports agricultural products like flowers, tea, and coffee to the UK, expanding into manufacturing requires a significant boost in investment. The current level of investment may not be sufficient to empower Kenyan firms to compete effectively in the UK market. Moreover, post-Brexit, the UK has shown a keen interest in forming strategic partnerships with former colonies, raising questions about the nature of these engagements and whether they are mutually beneficial.
President Kenyatta's visit to the UK is crucial for his legacy as he enters his final year in office. The 'Big Four Agenda' which focuses on health, manufacturing, agriculture, and affordable housing, has been a centerpiece of his administration. The $182.6 million investment from the UK could play a pivotal role in realizing these goals; however, achieving substantial progress within a year remains a challenge. The allocation of funds towards housing and manufacturing projects, though positive, may fall short of the scale needed to make a significant impact within the specified timeframe. President Kenyatta's visit symbolizes a critical moment in his presidency, as he seeks to leave a lasting legacy in the final stretch of his term, navigating the complexities of international trade and investment to secure Kenya's economic future.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.