The United States and Kenya have committed to advancing their trade and economic relations with a new series of discussions set for next month. This announcement came during a high-profile visit by Kenyan President William Ruto to Washington, where both nations expressed their intent to deepen business connections through forthcoming negotiations. These talks, part of the ongoing Strategic Trade and Investment Partnership (STIP), are scheduled to occur in Mombasa from June 3 to 7, marking the sixth in-person negotiation round.
Amidst this diplomatic engagement, U.S. Commerce Secretary Gina Raimondo called upon business leaders to build upon the momentum generated by the week’s events. She emphasized the importance of sustained engagement, remarking, “We cannot go home, feel excited for the weekend, and move on. We’re all in on Africa, all in on Kenya. Let’s go make more deals together.”
Tech Investments and Digital Expansion
Technology and investment featured prominently during the discussions, with significant announcements indicating a future rich with potential. Alphabet’s Google has committed to increasing its investments in Kenya, with plans to establish the first-ever fiber optic route directly connecting Africa with Australia. This development will significantly enhance the digital infrastructure in the region, providing a direct link through South Africa before crossing the Indian Ocean.
Further emphasizing the focus on green technology, the U.S. International Development Finance Corporation announced substantial financial support for Kenyan initiatives. A $10 million direct loan to BasiGo supports the company’s efforts in leasing and selling electric buses to public transport operators, while an equal investment in Roam Electric bolsters the production of electric motorcycles in Nairobi. These initiatives align with President Ruto’s recent policy promises to eliminate taxes for companies that manufacture the first 100,000 two-wheelers and four-wheelers locally.
Major Infrastructure Developments
A groundbreaking partnership between Kenya and Microsoft aims to erect a $1 billion, 1-gigawatt data center in Naivasha, powered by Microsoft Azure cloud services. This venture will not only provide robust cloud-based solutions throughout Kenya but also assist the Kenyan government in migrating its data and services to more reliable vendors. Microsoft President Brad Smith detailed plans to extend internet services to an additional 20 million Kenyans next year, substantially increasing digital accessibility across the country.
This suite of initiatives underscores the ongoing commitment of both Kenya and the United States to foster a dynamic and mutually beneficial economic relationship. As these projects develop, they promise to significantly influence the economic landscape in Kenya and strengthen ties with the United States, fostering a new era of growth and collaboration.
Source: ReutersÂ
