US woos Kenya with big deals, takes swipe at China strategy

President Uhuru Kenyatta and US Ambassador to Kenya Kyle McCarter at the opening of the American Chamber Of Commerce Business Summit 2019 at the UN Headquarters at Gigiri in Nairobi. [Wilberforce Okwiri, Standard]

The US has unveiled a new strategy to deepen trade relations with Kenya while taking swipe at China’s inroads into Africa.

American Ambassador to Kenya Kyle McCarter yesterday announced the roll-out of a Sh41.3 billion credit facility targeting businesses that source their products from the US, especially those dealing in infrastructure.

He also unveiled a private sector-led initiative meant to spur trade and investment in eight counties.

The counties in the Prosper Counties Initiative are Isiolo, Kakamega, Mombasa, Makueni, Kiambu, Kisii, Kisumu and Nakuru.

Mr McCarter said the Export-Import Bank of the United States (EXIM) is currently reviewing “several transactions” that will benefit from the credit line.

“Several engineering firms are in discussion with the National Treasury… we believe this is a start of a strong relationship between our governments,” he said.

McCarter was speaking in Nairobi at the second American Chamber of Commerce (AmCham) Business Summit that seeks to strengthen trade relations between Kenyan and the US.

And in a thinly-veiled swipe at China, which has been accused of saddling African countries with debt through its Belt and Road Initiative, the envoy said that the US advocates a “self-reliant” Kenya and that its model would not burden the country with debt.

“We’re going to put forth projects that have meaning to Kenyans. Our shared goal is to pave a path to Kenyan self-reliance, for Kenya to move from beneficiary to benefactor,” he said.

“The United States model focuses on long-term growth and sustainability, not debt.”

US Deputy Assistant Secretary for the Middle East and Africa Seward Jones urged businesses to identify potential projects that could benefit from the funding.

“It is up to US and Kenyan businesses to identify those bankable projects involving US exports,” said Mr Jones.

McCarter, meanwhile, said the Prosper Counties Initiative is in line with the government’s renewed focus on Public-Private Partnerships for projects to cut borrowing.

The heightened efforts at deepening trade relations between the two countries are part of a deal signed between the US and Kenya under President Donald Trump’s “Prosper Africa” initiative.

Under the agreement, the government will identify particular projects and areas that “would like to see a greater participation by US companies” mostly in the Big Four agenda.

It will also identify “business climate issues” and unlock bottlenecks that might hinder US companies from taking advantage of business opportunities.

The US provides Sh1 billion annual financial assistance to Kenya ranging from health, agriculture, education and security. President Uhuru Kenyatta told investors that he would not relent on the war against corruption in a bid to improve the country’s business environment.