America intensifies focus on Africa to rival Chinese investments grip

In recent years, there has been a growing focus on Africa by global superpowers like the United States to counter the influence of countries such as China and India on the continent. The United States, in particular, has intensified its efforts to strengthen two-way trade and investment with African nations, including Kenya. The visit of high-level dignitaries to Kenya, such as after the US Africa Leaders Summit, signifies a commitment by the US government to engage with Africa and elevate the profile of countries like Kenya in the international community. Such visits not only demonstrate a commitment to bilateral relationships but also attract potential investors to the country. One of the critical aspects influencing Kenya's trade relations with the US is the imminent expiration of its preferential access to the US market under the AGOA treaty in 2025. The Kenyan government has been proactive in engaging the US government in discussions to explore a strategic trade and investment partnership that would preserve the benefits accrued through AGOA. By positioning itself for a more significant trade arrangement with the US, Kenya aims to retain trade preferences and continue benefiting from the existing trade frameworks. Recent trade data between Kenya and the US indicates a shift in trade trends, with a focus on agricultural exports to the US market. The increase in agricultural exports, particularly in textiles, apparel, coffee, and macadamia nuts, highlights the deepening of the trade relationship between the two countries. Kenya's private sector has been actively leveraging opportunities in the US market, leading to substantial growth in export volumes. The growth in key sectors such as textiles and agriculture demonstrates the potential for further expansion and collaboration between Kenya and the US. Looking ahead, there are significant investment opportunities for US investors in Kenya across various sectors. Information and Communication Technology (ICT) serves as a significant area for investment, with ICT acting as an enabler within multiple sectors. Manufacturing, particularly in apparel manufacturing, presents considerable investment potential, given the growth in exports and the demand for related accessories. Additionally, the agriculture sector, including agro-processing, mechanization, and biotechnology, offers opportunities for US investors to contribute to Kenya's agricultural growth. While the investment landscape in Kenya holds promise, concerns have been raised about the country's tax regime and its unpredictability. Some investors view Kenya's tax policies as a potential challenge to planning growth and positioning themselves effectively in the market. Recognizing the importance of creating a stable and consistent regulatory environment, the Kenyan government has been engaged in discussions to develop a fair and enduring tax framework. By establishing a predictable tax policy, Kenya aims to provide clarity and stability for businesses to make strategic long-term investment decisions in the country. In conclusion, Kenya's strategic trade relations with the United States present a promising opportunity for mutual growth and collaboration. By addressing key areas such as trade preferences, investment opportunities, and tax policies, Kenya aims to solidify its position as an attractive investment destination for US investors. As the focus on Africa intensifies, both Kenya and the US stand to benefit from a strengthened and prosperous trade partnership.