Inside Kenya’s Sh40bn bag of goodies

What you need to know:

  • On Wednesday this week President Uhuru Kenyatta witnessed the signing of three agreements in which China will extend Sh15.241 billion support to Kenya.
  • The European Union is the primary market for Kenyan coffee beans, which grew by 17 per cent in 2014 to Sh2.6 billion ($254.2 million) due to improved production and higher prices.
  • Barclays Bank of Kenya, Managing Director, Jeremy Awori made the announcement during the  International forum on Women in Business forum which the bank hosted in partnership with the government.

Kenya has inked several mouthwatering bilateral trade agreements and other goodies in grants and loans amounting to over Sh40 billion on the sidelines of the 10th World Trade Organisation Ministerial Conference in Nairobi.

The three-day top decision making organ of the organisation, has been going on in Nairobi from Tuesday this week and ended on Friday. It has attracted over 6,000 delegates.

On Wednesday this week President Uhuru Kenyatta witnessed the signing of three agreements in which China will extend Sh15.241 billion support to Kenya.

The agreements were signed by National Treasury Cabinet Secretary Henry Rotich and Chinese Minister for Commerce Gao Hucheng.

They were on a Sh10.358 billion concession loan for the implementation of the national optic fibre backbone infrastructure extension project phase two, Sh4.781 billion grant for the construction of the Ministry of Foreign Affairs headquarters and a certificate of acceptance for a $1 million (Sh102 million) grant to support Kenya in hosting the World Trade Organisation meeting.

PROTECT WILDLIFE

During the meeting President Kenyatta said Kenya was keen on using the grants and interest-free loans provided by China in the modernisation of health equipment and hospitals across the country as well as construction of stadia for the use by young people.

Mr Gao said in addition to supporting Kenya in energy, infrastructure, agriculture, education and health, china was also keen to help protect Kenya’s wildlife.

Separately, Kenya received Sh15 billion support from the Danish government to expand infrastructure and increase efficiency at Mombasa, port.

The Danish Minister for Foreign Affairs Kristian Jensen toured the port and was satisfied that the funding of his government through Trade Mark East Africa Company in the past had a positive impact along the northern corridor.

The “Kenya country programme” will begin in January and is divided into good governance, green growth and employment, and health.

Mr Jensen said governance will receive Sh3.5 billion, green growth and employment Sh7.5 billion and health Sh4 billion.

At the same time, Canada announced a Sh2 billion fund to provide training for the small businesses in Kenya. Canadian Minister of International Trade Minister Chrystia Freeland made the announcement on the sidelines of the Ministerial Conference.

“By equipping Kenyan entrepreneurs, especially women and youth, with tools to start and run their businesses, we are bringing about positive change in their homes and communities,” Mr Freeland said.

PROMISE ON COFFEE

Mr Freeland said Canada is contributing Sh1.95 billion ($19.5 million) over seven years, until 2021.

Kenya was also promised continued support by the European Union with regard to its coffee.

EU Commissioner for Agriculture and Rural Development Phil Hogan visited Kenya’s Coffee Research Institute on the sidelines of the conference.

The European Union is the primary market for Kenyan coffee beans, which grew by 17 per cent in 2014 to Sh2.6 billion ($254.2 million) due to improved production and higher prices. This earned farmers Sh15 billion ($145 million) at an average price of Sh22,300 ($212) per 50 kilogramme bag.

In 2013, the Coffee Research Institute (Formerly Coffee Research Foundation) received EU funding of Sh200 million (€2 million) over four years and targets cooperatives in 32 coffee growing counties in Kenya.

Separately, the EU also announced its support for African countries with a Sh33.5 billion funding to address irregular migration and forced displacements in the continent.

BETTER LIVELIHOODS

The EU commission said in a statement that the money will be put into use in early 2016.

Bulk of the money at Sh8.7 billion will help return internally displaced refugee in South Sudan to their areas of origin. Sh7.5 billion will go towards creating better livelihoods in Ethiopia.

This was announced by the EU Commissioner for International Cooperation and Development, Neven Mimica.

On the sidelines of the talks, Barclays Kenya also announced it has set aside a Sh5 billion loan to businesses owned or run by women.

Barclays Bank of Kenya, Managing Director, Jeremy Awori made the announcement during the  International forum on Women in Business forum which the bank hosted in partnership with the government.