India To Give Ksh32.2B Loan To Kenya, Negotiations Ongoing
Kenya and India are negotiating a Sh32.2 billion (US$250 million) loan facility to boost bilateral trade, according to Investment, Trade, and Industry CS Salim Mvurya.
Mvurya revealed that the two countries have been discussing ways to expand trade and open up new investment opportunities.
The CS also stated that India has already provided Kenya with a separate loan of Sh1.9 billion (US$15 million) to support Micro, Small, and Medium Enterprises (MSMEs).
“We have not concluded the discussions but we intend to use the Sh32.2 billion loan to boost the agriculture sector through value addition,” Mvurya added.
“If it goes through, Sh12.9 billion (Usd100 million) will go towards supporting County Aggregation and Industrial Parks. As of now, it is still a discussion.”
The Government of India reiterated its support for Kenya’s manufacturing and investment sectors, as we look forward to holding bilateral talks focused on areas of cooperation that will advance the Kenya Kwanza agenda to accelerate industrialization and economic growth. 3/3… pic.twitter.com/JWzcMtIZfK
— H.E Salim_Mvurya (@Waziri_Mvurya) September 19, 2024
CAIP’s primary goal is to increase manufacturing and agro-industrial investments while also improving agriculture’s competitiveness.
The CAIPs are expected to improve the competitiveness of local products in both domestic and international markets by providing a centralized facility for agricultural produce aggregation and processing.
Speaking at a press conference at his office, Mvurya stated that businesses that import machinery, equipment, and raw materials from India will be prioritized.
The CS announced the formation of the Joint Trade Committee, which will oversee efforts to increase trade and investment between the two countries.
He stated that the committee will hold its first meeting in two weeks.
During a courtesy call with the High Commissioner of India to Kenya, H.E. Namgya Khampa, we agreed on the need for targeted promotion of Kenyan goods and services in key sectors such as pharmaceuticals, tourism, and agriculture. 2/3@MITIKenya @PSAhassan @DrJumaMukhwana… pic.twitter.com/9JfLldJb7g
— H.E Salim_Mvurya (@Waziri_Mvurya) September 19, 2024
“We want to assure India that we are excited about the deal and want to continue with the relations. In three years, exports to India have grown by 50 per cent,” he said.
As the Ministry embarks on collecting proposals for reforms aimed at addressing bottlenecks that hinder the growth of investments in Kenya, we reaffirm our commitment to fostering a conducive business environment that attracts both local and international investors. 1/3… pic.twitter.com/7owA030fGM
— H.E Salim_Mvurya (@Waziri_Mvurya) September 19, 2024
Namgya Khampa, the Indian High Commissioner to Kenya, stated that her country is eager to expand its trade relations with Kenya.
“We will step up and find projects that strengthen our partnership,” Khampa said.
“We are looking forward to see the advise the Joint Trade Committee will give on growing trade and investments between the two countries,” she said.
India To Give Ksh32.2B Loan To Kenya, Negotiations Ongoing
