British firms commit Sh14.5b to finance projects in Kenya

 

British Secretary of Foreign Affairs and Commonwealth Relations when he paid a courtesy call on Foreign Affairs Cabinet Secretary Monica Juma in Nairobi on Friday. [Phillip Orwa, Standard]

Kenya has secured Sh14.5 billion from Britain to fund various high impact projects across the country.

The financing is the outcome of a bilateral meeting held in Kenya on Friday and officiated by visiting British Foreign Secretary Jeremy Hunt.

“The proposal for a regular UK-Kenya Economic Development Forum was initially agreed by President Kenyatta when the UK Minister for Africa attended the Presidential inauguration in November 2017,” read a joint statement by the two countries.

Also, the communication said the meeting was crystallised when President Kenyatta and UK Prime Minister Theresa May affirmed the need for the same when they met in Nairobi in August last year. 

“The forum will aim to meet biannually, with representation from the Government of Kenya convened by the Ministry of Foreign Affairs, and the UK represented by the High Commissioner to Kenyawith visiting UK government representatives as appropriate,” it said. 

Among the pledges was Sh6.9 billion from Globeleq to fund the new Malindi solar project which will create up to 250 jobs.

Also, more than Sh1.4 billion was committed by British currency printer De La Rue to expand its operations in Kenya.

“A new innovative joint venture between British firm De La Rue and the Government of Kenya will build on De La Rue’s successful operations in Kenya to create even more highly skilled jobs for Kenyans,” read the statement. 

The support comes as De La Rue already contributes over Sh1 billion to the Kenyan economy in terms of wages, rent, taxes and purchases from local suppliers, according to a release accompanying the joint statement.

Also, the firm, which manufactures security printed products including banknotes, employs over 300 Kenyans directly and provides employment opportunities for over 3000 more through its supply chains.

“A new Sh1.4 billion investment to upgrade their facilities will build a pipeline of new opportunities in the region, generating revenue and creating even more high quality jobs in Kenya,” said the statement.

The forum also agreed to jointly host the first Africa Investment Summit in the UK in 2020 and use the opportunity to present a strong pipeline of investable projects in Kenya.

It also welcomed the commitment by the UK Prime Minister to maintain Kenya’s duty and quota free access to the UK after it departs the European Union.

Trading agreement

“Once the terms of the UK’s departure are finalised, the UK will engage with Kenya and the wider East Africa Community to secure a long term and prosperous trading agreement,” reads the notification.

British real estate firm Unity Homes committed Sh6 billion to build 1,200 affordable homes at Tatu City.

The Foreign Secretary also announced more than Sh186 million targeted at the creative industries in Kenya and Nigeria.

“The Creative Enterprise programme will help 540 entrepreneurs from across the two countries access training and support in the UK,” he said.

Mr Hunt said the new investment will create hundreds of jobs in Kenya, and will pave the way for future opportunities.

At the same time, De La Rue’s Regional Director for Africa Matt West said the new project with the Government of Kenya builds on the firm’s  already long and productive business engagement. 

“It expands the opportunities for highly skilled jobs for Kenyans and opens up the prospect of new business in the region, which will add yet more value to this highly productive partnership,” he said.

At the same time, British Council’s Regional Director for Sub-Saharan Africa Moses Anibaba said the funding further strengthened the partnership between the creative economies of the UK and Africa.

“The programme presents a unique opportunity for young entrepreneurs in the UK and Africa to connect, create jobs and build enterprises in what is a fast-growing industry and one that is a sector of competitive advantage, in both countries,” he said.