UK seeks to revive Kenya exports with Sh74bn kitty
The UK has over the years remained Kenya’s largest source market for tourists but its exports have been dwindling. PHOTO | FILE
What you need to know:
British agency advances loans to overseas buyers of goods from the UK, which could include Kenyan firms looking to import British merchandise into the country.
Britain has set up a Sh74 billion fund to provide credit lines to local firms that buy goods from the European state in a bid to revive its dwindling exports to Kenya.
The UK’s Trade envoy to Kenya, Lord Clive Hollick - who is expected in the country on Wednesday for a three-day visit - is set to unveil the fund that also provides cover against risks incurred by British firms while exporting goods to Kenya.
“Central to his discussions with national government will be the UK Export Finance (UKEF) which has set aside up to £500m (Sh74bn) to support trade with Kenya,” says a statement from the British High Commission in Nairobi.
The UKEF is Britain’s export credit agency that covers UK exporters against risks associated with export trade and guarantees exporters seeking commercial bank loans.
The agency also advances loans to overseas buyers of goods from the UK, which could include Kenyan firms looking to import British merchandise into the country.
London has over the years remained Kenya’s largest source market for tourists but its exports have been dwindling.
In recent years, the country has been losing out to China, India and Japan with official data showing the value of imports from the UK to Kenya dipping to Sh40.1 billion in the first 11 months of last year, compared to Sh41.3 billion a year earlier and Sh45.7 billion in 2013.
Relations between Nairobi and London came under focus following threats by the former colonial master to cut ties with Kenya should Uhuru Kenyatta, then an ICC indictee, be voted president in the 2013 polls.
The charges against President Kenyatta have since been dropped.
The UK has recently sought to reset frosty relations with Nairobi with Prime Minister David Cameron set to visit Kenya this year.
Lord Hollick will meet government officials and tour projects undertaken by British firms including exploration firm Tullow Oil and the location for a proposed solar hybrid plant in Turkana by renewable energy firm Tropical Power.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
