Kenya keen on boosting its trade volumes with Iran
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Business Staff Reporter Garowe Online
- Posted On 12-07-2023, 06:28PM
NAIROBI - Kenyan President William Ruto said trade volumes between the two countries are still low but with potential to grow.
The head of state explained that Kenya and Iran will strike a formula that will facilitate higher exports of tea, coffee, and meat.
“This will bring about the much-desired trade balance that is in favour of Iran.”
He made the remarks on Wednesday at State House, Nairobi, after holding talks with President of Iran Ebrahim Raisi.
President Ruto observed that Kenya will also use the Persian country’s wealth in technology and innovation for its development.
He pointed out that the setting up of the Iran House of Innovation and Technology in Nairobi will offer the right platform for Iranian and Kenyan businesses.
“This is an innovative way of enabling enterprises to access Iranian technologies, skills, and information.”
He explained that Kenya and Iran are strategically located to be each other’s key points of entry into their respective regions.
“We will seek to capitalize on this unique advantage for our prosperity.”
As a consequence of regular interactions, President Ruto argued that Kenya and Iran have signed more than 22 MoUs and agreements.
The instruments have been key to the cooperation in development, education, scholarships, infrastructure, health, water, fisheries, and agriculture.
During their meeting, Dr Ruto and Dr. Raisi witnessed the signing of new MoUs and agreements in the areas of agriculture, livestock, culture and heritage, information, ICT, fisheries, housing, and urban and metropolitan development.
President Ruto lauded Iran’s support in health, terming it a critical step towards the realization of Kenya’s Universal Health Coverage.
President Raisi lauded Kenya’s commitment to creating a friendly environment for foreign businesses.
He said more Iranian firms will establish operations in the country, paving their way to accessing EAC, COMESA, and AfCFTA markets of more than 1.4 billion people.
“The Kenya-Iran relations can always be strengthened for our benefit,” he said during a media briefing.
At the same time, the Persian state has also agreed to set up a vehicle assembly plant in Mombasa after signing an agreement with the Kenyan Government.
The coastal-based auto facility will manufacture Iranian-made vehicles dubbed Kifaru.
“I express our appreciation of our bilateral cooperation in the promotion of trade particularly in the export of Kenyan products,” President William Ruto said while hosting his Iranian counterpart Ebrahim Raisi in State House Nairobi.
“I sought the president’s commitment in facilitating the export of more tea, meat, and other agricultural products to Iran, and through Iran to the central Asian countries,” Ruto added.
President Ruto also revealed that the Kenyan tea sector had immensely benefitted from the Iranian market through export.
For instance, he said that the country exported tea worth $28.4 million to Iran in the first quarter of this year, representing an eight-fold increase from the same period last year.
The duo also agreed to strengthen blue economy partnerships by supporting startups and facilitating the sector through research and technology.
“I’m very happy that this morning we have signed an MOU that will give us the necessary framework for us to tap into our blue economy resources that are underdeveloped in Kenya,” added the President.
GAROWE ONLINE
