Tea, flower exports top in Kenya-Nigeria talks

President Uhuru Kenyatta (right) receives Nigerian President Muhammadu Buhari at Eldoret International Airport, Uasin Gishu County yesterday. [PHOTO: PSCU]

NAIROBI: Kenyan tea and flower farmers could be beneficiaries of today's trade talks between Kenya and Nigeria. This comes following bilateral trade talks between the two countries on the second day of Nigerian President Muhammadu Buhari's State visit to Kenya.

Top on the business agenda for the two economies was streamlining business ties and reviving agreements, some of which have stalled for close to two years.

President Buhari, who is accompanied by more than 42 high-profile business leaders Wednesday attended a requiem prayer service in memory of Kenyan soldiers killed in Somalia.

Representatives of the business communities from both countries Wednesday held day-long meetings to iron out key trade issues to be addressed by the two presidents at bilateral trade talks at State House today.

"We have had a full day of talks and meetings with representatives from theNigerian business community to thrash out the agenda for tomorrow and we have succeeded in putting down some key issues that are dear to our farmers and exporters," explained chairman of the newly revamped Kenya National Chamber of Commerce and Industry, Kiprono Kittony.

"One of the first things that will be addressed is the list of banned Kenyan agricultural imports, which Nigeria has expressed willingness to review and we expect some items to be crossed off that list," explained Mr Kittony.

Nigeria had banned some Kenyan agricultural goods like tea and flowers forcing farmers to seek other routes and markets for their produce.

Data from the Kenya Revenue Authority's customs department indicates that trade between Kenya and Nigeria has plateaued over the last 10 years with a Sh1.7 billion average trade balance over the last five years in favour of the former.

Kenya's exports to Nigeria between 2010 to 2014 averaged Sh2.2 billion while imports from Nigeria to Kenya averaged Sh527 million over the same period of time.

In 2014, Nigeria rebased its growth figures which saw GDP jump from about $270 billion (Sh27 trillion) to $510 billion (Sh51 trillion) an exercise that saw it rocket past South Africa to become Africa's and the world's 26th largest economy.

Kenya and Nigeria have constantly been cited for their growing economies and strengthening regional presence in the East and West African trade blocs respectively even as both countries experience significant infrastructural, security and financial constraints.

"The other issue that both countries agree on is strengthening the capacity and efficiency of governmental agency to share information and data," explained Mr Kittony.

"We expect this to facilitate the right policy environment between the two countries to allow ease of doing business for investors to and from either country," he said.