A delegation from the Ministry of Trade and Investment is expected to sign a Ksh271 million contract with Washington D.C.-based lobbyists Continental Strategy as Kenya seeks to reinforce trade and investment relationships between the two countries.
In a statement on Monday, August 18, Trade Cabinet Secretary Lee Kinyanjui said that during the three-day visit, he and the Trade Principal Secretary, Regina Ombam, will hold talks with senior U.S. trade officials and the American private sector through the U.S. Chamber of Commerce to sign the deals.
During the meeting, the two parties will deliberate on the strategies that they may put in place to reinforce Kenya's grip on the U.S. export market and address tariff measures, especially after the expiration of the African Growth and Opportunity Act (AGOA) in September 2024.
"The central focus of the discussions is securing Kenya's long-term trade and investment interests, with particular attention to safeguarding Kenya's exports beyond the expiry of AGOA and addressing tariff measures impacting our broader export portfolio," the CS said.
"Kenya and the United States enjoy historic relations built on mutual benefits. This visit provides an important opportunity to deepen those ties while creating new pathways for business and investment on both sides," he added.
The move comes amid the return of U.S. trade tariffs, including those on Kenya, including a 10 per cent tariff on Kenyan exports to the US, which has in turn shaken the country's economic stability.
According to reports, the United States has the intention to ensure that the African Growth and Opportunity Act, which offered quota- and duty-free trade to more than 30 countries, including Kenya, is still on in some form.
The United States and Kenya have been on the rocks in the past four months, especially after President William Ruto deepened his association with China, which is arguably one of the superpowers' competitors.
Just two weeks ago, reports emerged that U.S. legislators were in the process of reviewing Kenya's Major Non-NATO Ally (MNNA) status with the United States, which was awarded to Kenya by Joe Biden's administration last year to acknowledge its counterextremism cooperation and its support for Western nations in emerging global conflicts.
This month, Senator James Risch proposed an amendment to Congress that would review seven important topics. These include Kenya's efforts to combat violent extremism, its contributions to peacekeeping in Africa and Haiti, and its military and security relationships with countries such as China, Russia, and Iran.
The review is also set to scrutinise the relationship between Kenya and the U.S. on matters such as countering violent extremism, peace missions in sub-Saharan Africa and Haiti, and Kenya's role as an economic partner.
If Kenya loses this recognition, it might lose its eligibility for loans for material, supplies, or equipment for cooperative research, development, testing, or evaluation from the U.S.
