State seeks $30 million credit line from India

By Patrick Githinji

The Kenya Government has requested for a Sh2.4billion ($30m) credit line from the Indian government for industrial development in the manufacturing and textile sectors, according to a copy of minutes obtained by The Standard, following a joint trade committee meeting between Kenya’s Trade Minister Chirau Ali Mwakwere and Indian Commerce and Industry Minister, Anard Sharma.

"India assured early consideration on the request once the formal proposal is received from the Government of Kenya," the minutes said.

The proposed line will be operationalised through IDB Capital and Exim Bank of India.

Currently, the country has already received a $61.6 million credit line for the power sector, and the Government has been requested to finalise the draft agreement.

However, in a press briefing in Nairobi yesterday, Sharma did not mention anything about the credit line. Instead he said the meeting sought to address the trade imbalance, which stood at $1 billion in favour of India by last year, and review bilateral trade.

Reviewed progress

"We have reviewed the progress of the bilateral trade, explored new areas of co-operation, and discussed ways and means to further trade, investment and technical co-operation between the two countries," Sharma added.

He said the Indian department of agriculture and cooperation had forwarded a draft memorandum of understanding (MoU) to Kenyan authorities, for collaboration in agriculture and allied sectors.

"The draft MoU provides for co-operation in agricultural research, animal husbandry and dairying, livestock and fishing."

The MoU also provides biennial work plans for proper implementation of the MoU for agricultural cooperation.

Mwakwere urged Indian investors to exploit the enormous investment opportunity made available by the regional trading arrangements.

Mwakwere, however, called for further collaboration in technology transfer and business process outsourcing. Both countries want to reach $2.5 billion in bilateral trade by 2013.