Kenya, UAE plot trade growth

Foreign Affairs minister Moses Wetangula and his United Arab Emirates counterpart Sheikh Bin Zayed Al Nahyan sign documents during the inaugural session of the Kenya-United Arab Emirates joint commission for cooperation on April 8, 2010 at Crowne Plaza Hotel. Photo/JAMES NJUGUNA

Kenya targets to increase its trade volume with the United Arab Emirates (UAE) to Sh150 billion by the end of the year.

Foreign Affairs minister Moses Wetang’ula said the target was set Thursday by President Kibaki at a meeting with a business delegation from the UAE.

Speaking at the signing of a bilateral agreement between the two nations at Nairobi’s Crowne Plaza Hotel, Mr Wetang’ula and his UAE counterpart, Sheikh Abdullah Bin Zayed Al Nahyan, said there was need to address the imbalance in investment between the two countries.

“Kenya is willing to discuss with the UAE, measures that will enable more UAE tourists to visit Kenya,” said Mr Wetang’ula.

Similarly, Mr Al Nahyan announced a plan to open an embassy in Nairobi. Currently, Kenya’s needs in the UAE have been served from UAE’s mission in Cairo, Egypt. On his part, Mr Wetang’ula said Kenya will open another office in Dubai to help reduce the traffic in the mission in Abu Dhabi.

On Thursday, it became clear that the Kenya Government has its eyes set on the petrodollars, earmarking nearly all infrastructure projects, for “partnership” with the UAE.

Top on the list is the new Lamu Port, an upgrade on the port of Mombasa, building of roads and railways in northern Kenya and the upgrading of the Isiolo and Wajir airports --all these projects being crucial to achieving the country’s growth target Vision 2030.

With 35,000 Kenyans earning their daily bread in the UAE, Mr Wetang’ula said, the government was looking at ways of having Kenyan nurses exported to work in the UAE.

However, this is dependent on signing of a labour agreement “to protect Kenyans from harrasment” while ensuring the UAE is not flooded with labour it doesn’t need.

Northern Kenya seems to be the key target for the UAE investments with Mr Wetang’ula terming the construction of Garrissa-Modogashe-Wajir-Mandera road as a “priority.” The project is funded by the Abu Dhabi Fund.

The Foreign Affairs minister noted that the Treasury was working on the details to ensure that investors are not taxed twice and to prevent businessmen from evading tax by under-declaration of their income.

The bait for the emirs, according to the signing ceremony, seems to be the 400 million people in the regional trading bloc --the Common Market for East and Southern Africa.

“By being in Kenya, you will have unlimited access to  this market and therefore benefit hugely from your investments,” said Mr Wetang’ula.

The Kenya Meat Commission too is also a target as Kenya eyes the emirates for the sale of meat products.

With at least 36 weekly flights to the UAE, Mr Wetang’ula said, it was only a matter of time for the investors to see the potential of growing their business.

Mr Wetang’ula hinted at a political agreement between the two countries to help end piracy off the coast of Somalia and ensuring peace and stability in the war-torn Horn of Africa.

Thursday’s meeting was the first in what has now been dubbed the Kenya-UAE Joint Commission for Cooperation. It was attended by top officials from the two countries.