Fix business climate to tap US investments

Editorials

Fix business climate to tap US investments


investment

The new trade talks between Kenya and the United States offer an opportunity for the country to attract significant investment in diverse economic sectors.

We, therefore, urge the negotiators to pursue these opportunities and ensure that Kenya does not lose out significantly in other areas.

American firms are ready to invest in energy, health, digital economy, infrastructure, manufacturing, and agriculture, according to a joint statement issued by the two countries.

Obviously, Kenya will have to offer incentives in return for such new foreign investment and these could include introducing preferential taxes and tariffs for American firms.

On balance, attracting new foreign investment should be beneficial for Kenya, which is among the countries well positioned to benefit from a gradual shift of manufacturing away from China and other Asian nations. Among the benefits are the creation of more jobs, technology, and skills transfer.

As wages rise in the Asian countries, Kenya and other African countries are seen as viable hosts of future manufacturing activities.

To better capitalise on the opportunities in the proposed trade deal with America, Kenya should continue to improve the business environment. These include making our laws, taxes, and infrastructure better and more competitive.

It will be critical for Kenya to ensure that a deal with the US fits with the country’s existing commitments to other agreements, including the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA).

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