'Kenyan SMEs to win big if proposed FTA with the US is adopted' – AMCHAM
Small and Medium Enterprises (SMEs) will be some of the biggest beneficiaries of the Free Trade Agreement that is currently being negotiated between the governments of Kenya and United States.
American Chamber of Commerce in Kenya (AMCHAM) CEO Maxwell Okello says SMEs will benefit from increased trade opportunities for both export and import.
According to the CEO, SMEs will have the opportunity to become distributors of American products, which are renown for high quality and innovativeness.
They will also benefit from Foreign Direct Investment and partnership opportunities with counterpart SMEs as well as larger U.S. companies.
“American companies wanting to do business in Kenya will be looking for partners with knowledge of the local market and supply chain systems; this is where SMEs come in,” he said.
Okello sees more gains for SMEs in the form of transfer of knowledge, expertise and technology from American businesses.
According to the CEO, this will in turn enhance the quality and competitiveness of their goods and services, thus spurring growth,” Okello said.
Experts have however warned Kenya to be careful with the deal.
East Africa Business Council Chair Nick Nesbitt has previously termed the proposed deal as ideal but has urged the government to be aware that it is negotiating with a superpower whose interests it will be seeking to guard.
Kenya and US launched negotiations for the landmark agreement early last month, paving way for trade and investment relations between the two countries.
Under the deal, Kenya’s exports will retain duty and quota free access to the US market, cementing the gains achieved during the African Growth and Opportunities Act (AGOA) that enabled Kenya to diversify and increase the value of exports to the US market.
Between 2009 and 2019, the value of Kenya’s exports to the US increased from Sh17.4 billion to Sh51.9 billion.
Over 70 percent of these earnings were from horticulture, apparels and textiles.
The US has 14 FTAs with 20 countries across the world.
In Africa, Morocco was the first in 2004 to conclude an agreement, hence, Kenya will be the second African country upon successful conclusion of the negotiations.
The negotiations come ahead of the anticipated lapse of the African Growth and Opportunities Act, popularly known as AGOA, on September 30, 2025.
Read related news articles
Kenya-US to deepen ICT, apparel and agriculture trade
Kenya and United States are in talks to identify areas of interest in information communication technology (ICT) sector that can interest US firms. A meeting between The US Ambassador to Kenya, Megan Whitman, and the Cabinet Secretary for Investments, Trade, and Industry Rebecca Miano, the states sought cooperation in six key areas. The meeting laid the groundwork for an enhanced collaboration between Kenya and the United States in...
09 November 2023
Optimism as Kenya-US trade deal enters 3rd round of negotiations
Trade negotiations between Kenya and the United States entered the third round last week, with four items listed for negotiations. The Kenya-US Strategic Trade and Investment Partnership (STIP) negotiations, held from October 4-7 in Washington DC, covered agriculture and sanitary and phytosanitary measures, services, domestic regulations, anti-corruption; and women, youth among others. The Kenyan trade team also held discussions with...
16 October 2023
Kenya-US trade agreement 'may need a rethink on workers'
The US and Kenya announced a trade and investment partnership in July 2022. Talks have been progressing on the way forward in nine areas, including agriculture, anti-corruption, digital trade, environment and climate change action, and workers’ rights and protections. The Strategic Trade and Investment Partnership (STIP) will be the first significant trade partnership between the US and a country in sub-Saharan Africa. Countries in the...
16 August 2023
Biden cranks up diplomatic charm offensive in Kenya
In a span of two weeks, US President Joe Biden has dispatched two senior members of his administration to Nairobi with a firm message to President William Ruto on good governance, human rights and a subtle push on the geopolitics surrounding the Russian invasion of Ukraine. And Kenya, a longtime Western ally, is under pressure to maintain trading ties with the US. The timing of the visit was significant as Russia hosted over 17 African...
29 July 2023
US says AGOA renewal still an option for Kenya
The US says it may consider proposing to its lawmakers an extension of duty- and quota-free access to its market for sub-Saharan countries when the current deal expires in May 2025. [AGOA.info note: AGOA removes standard import tariffs, but not quotas). United States Trade Representative Katherine Tai, said another renewal of the preferential trade programme depends on the US Congress, but her office could facilitate it. “We are...
22 July 2023
Some uncertainty as negotiations on the US-Kenya trade agreement proceed without a fixed timetable
A recent report has shown that the United States is unsure when discussions for a free trade agreement with Kenya would be completed, notwithstanding the fact that Nairobi previously stated that the talks would be completed by December. The United States Trade Representative Katherine Tai, who wrapped up a three-day visit in Nairobi on Wednesday, stated that the US negotiators do not have a timetable for ending discussions or signing the...
20 July 2023
Kenya's president meets US delegates on trade and investments
Kenyan President William Ruto has today held talks with US Trade Representative, Ambassador Katherine Tai. The discussions were based on US trade policy. Ruto said that the country is ready to strengthen the already existing relations between the two nations. "We will stretch our ties beyond the African Growth and Opportunity Act (AGOA) in the wake of advanced technology and climate change, for the full exploitation of our trade potential,"...
19 July 2023
US trade rep in Nairobi as Kenya's solo deals worry the EAC block [incl. Readouts]
The US trade representative is in Nairobi to co-lead a meeting that seeks Kenya's partnership in a fresh trade deal. The Trade and Investment Framework Agreement (TIFA Council) is pursuing various agreements even as regional peers express concern over Kenya's solo approach. Yesterday, Trade Representative, Katherine Tai met patron circle members of the American Chamber of Commerce-Kenya (AmCham Kenya) ahead of today's...
17 July 2023
USTR releases summaries from US-Kenya STIP negotiations
Consistent with the Biden-Harris Administration’s commitment to the highest levels of transparency in trade agreement negotiations, the Office of the United States Trade Representative (USTR) today released summaries of texts ( Download the document alongside or in the Kenya-US STIP section) proposed by the U.S. side during the first negotiating round of the United States-Kenya Strategic Trade and Investment Partnership (STIP),...
23 May 2023
Why Africa, why Kenya? Remarks by US Ambassador to Kenya
Thank you, Scott, for the kind introduction. It is a pleasure to partner with the Prosper Africa initiative to drive investment in Kenya and countries across the African continent. I am happy to kick off our U.S.-Kenya Business Roadshow with all of you today, and to announce that we will be partnering with Prosper Africa throughout the year to engage businesses and investors in cities across the United States. Our next stops include San...
26 April 2023
Kenya-USA: Joint Statement on the third US-Kenya bilateral strategic dialogue [incl. VIDEO]
The text of the following statement was released by the Governments of the United States of America and the Kenya on the occasion of U.S.-Kenya Bilateral Strategic Dialogue in Washington, D.C. on April 24, 2023. Begin Text: The Governments of the United States of America and the Republic of Kenya held the third iteration of the U.S.-Kenya Bilateral Strategic Dialogue in Washington, D.C. on April 24, 2023. The U.S.-Kenya Strategic...
24 April 2023
