Strengthening Kenya-UAE economic collaboration

Kenya and the United Arab Emirates have taken a significant step towards enhancing trade, investment, and economic cooperation with the signing of the Comprehensive Economic Partnership Agreement (CEPA). This transformative agreement solidifies Kenya's position as a gateway to East and Southern Africa, aligning with the government's goal of reducing borrowing while boosting investment capital, foreign direct investment, and public-private partnerships. The CEPA represents a milestone in the growing economic collaboration between the two nations, setting the stage for increased bilateral trade and investment opportunities. CNBC Africa's Flora Limukii recently sat down with Alfred K'Ombudo, the Principal Secretary for trade in Kenya, to delve deeper into the details of this landmark partnership. Throughout the interview, K'Ombudo highlighted the promising sectors and potential growth areas that the CEPA is expected to unlock for both countries. One of the key focus areas is the agricultural sector, where Kenya has a strong foothold and significant export potential to the UAE. With the agreement in place, Kenya aims to triple its exports in sectors such as meat products, horticulture, and cut flowers, leveraging the UAE's strong demand for these products. The UAE serves as a vital transshipment hub for the region, making it a crucial market for Kenyan agricultural exports. Moreover, the CEPA facilitates the streamlining of procedures related to sanitary and phytosanitary standards, customs, and logistics, paving the way for increased trade volumes. Beyond agriculture, K'Ombudo discussed the opportunities for collaboration in technology, climate change, and employment between Kenya and the UAE. Both countries share common economic interests and goals, positioning them as strategic partners for mutual growth and development. The CEPA includes provisions to enhance market access in the services sector, particularly in fields like ICT, construction, and engineering, opening up new avenues for professionals from both nations. The agreement also focuses on boosting cooperation in the logistics sector, capitalizing on the UAE's expertise in this area to strengthen Kenya's trade capabilities. Looking ahead, K'Ombudo emphasized Kenya's commitment to leveraging its young talent and digital infrastructure to expand its export of digitally delivered services. By aligning with the UAE's strengths in technology and innovation, Kenya aims to increase its participation in the global digital economy. Additionally, the CEPA positions Kenya as a gateway to the UAE and the broader African continent, offering a strategic entry point for investors and businesses looking to access African markets. As the first agreement of its kind between the UAE and a mainland African country, the CEPA reinforces Kenya's status as a reliable investment destination with clear regulatory frameworks and dispute resolution mechanisms. Furthermore, Kenya's role as an aggregation point for commodities from neighboring countries underscores its importance in facilitating trade flows and value addition in the region. The CEPA sets the stage for deeper economic integration and cooperation between Kenya and the UAE, unlocking new opportunities for growth and prosperity.