William Rutto, the president-businessman, has accomplished considerable international success, marking a series of significant investments and partnerships for his country. Following a $4.48 billion investment revealed at the World Climate Summit and a $620.7 million investment from Japan, Kenya and the United Arab Emirates (UAE) have now inked a comprehensive economic partnership agreement (CEPA) to enhance their trade relationship. The Emirati Minister of Foreign Trade, Thani Al Zeyoudi, highlighted on February 23, 2024, the purpose of diversifying beyond petroleum products as part of this agreement.
Rebecca Miano, the Kenyan counterpart, voiced enthusiasm for the agreement, expecting it will grow Kenya’s exports to Asia and the Middle East and attract more investments. The UAE is expanding its influence in Africa, notably in Morocco, and is now setting a presence in the Horn of Africa, starting with East Africa’s largest economy.
Kenya, where 92% of its electricity is generated from renewable sources, has been an important focus for the Arab Emirates. This was evident when the UAE announced a $4.5 billion in funding as part of the first African Climate Summit, underscoring Kenya’s importance and influence.
The non-oil trade between the UAE and Kenya reached $3.1 billion in 2023, a 26.4% increase compared to 2022. The Emirati minister expressed intentions to expand into different sectors, including food production, mining, technology, and logistics, as indicated in a message on the social network X.
The Kenyan Minister of Commerce stressed that the CEPA with the UAE would allow Kenyan exports to access crucial markets in Asia and the Middle East, stimulating investment flows to develop national capabilities further.
Abu Dhabi’s decision to sign a series of global economic partnership agreements with countries like Israel, Turkey, India, Indonesia, and Mauritius reflects its strategy to prepare for the post-oil era. Kenya, with its ambitious economic reforms and status as a regional powerhouse, especially after initiating the creation of an East African stock market, is well-positioned to benefit from this partnership and has bright prospects for the future.