President Uhuru Kenyatta, British Prime Minister Boris Johnson and UK Foreign Secretary Dominic Raab have announced a new Ksh. 19.9 billion (£132 million) investment package with Kenya. The announcement was made at the start President Kenyatta’s three-day visit to the UK to co-host the Global Education Summit.
The Foreign Secretary Dominic Raab also launched the Nairobi International Financial Centre, and its formal partnership with the City of London. This partnership has established a formal partnership, including closer collaboration with the London Stock Exchange.
This collaboration will help to channel international investment into Kenya and the wider region, making sure firms and investors are able to maximize on trade and investment opportunities.
Speaking during the announcement, Foreign Secretary Dominic Raab said, “This £132 million package of new UK-Kenya deals from the UK government and British firms will support investment in the region, including building new green affordable homes, connecting households to clean energy, and boosting manufacturing. This package of investments will create new jobs and unlock new opportunities for UK and Kenyan businesses by strengthening the relationship between Nairobi and the City of London.”
President Kenyatta also secured the backing of UK investors to boost affordable housing and manufacturing across Kenya. An additional Ksh. 4.23 billion (£28 million) of private investment in Kenyan manufacturing was confirmed as a result of the UK’s Manufacturing Africa initiative. An additional Ksh. 679 million (£4.5 million) was secured from UK company ARC, which aims to grow its fleet of electric vehicles in Kenya.
The Foreign Secretary also announced a new Ksh. 8.8 billion (£58 million) fund, anchored by Ksh. 5.3 billion (£35 million) of UK government investment, which will finance the construction of 10,000 green affordable homes in Kenya. This is on top of Ksh. 8 billion (£53 million) of investment in Kenyan affordable housing announced during the Foreign Secretary’s visit to Kenya earlier this year.
A new digital customs system for Kenya will make it faster and easier for goods to move between Kenya and the UK, and between Kenya and the rest of the world. Delivered by TradeMark East Africa, and backed by Ksh. 2.7 billion (£18 million) of UK funding, this will boost Kenya’s economy, allowing firms to take greater advantage of the recently ratified UK-Kenya Economic Partnership Agreement and grow our Ksh. 211 billion (£1.4 billion) mutual trade.
President Kenyatta also met with COP President Alok Sharma at Kew Gardens to celebrate progress on the Kenya-UK Year of Climate Action. The UK announced Ksh. 558 million (£3.7 million) of new UK funding to accelerate Kenya’s climate transition, including projects supporting renewable energy, clean cooling, and forest restoration. UK-backed InfraCo Africa will also invest Ksh. 498 million (£3.3 million) in off-grid solar to provide clean energy access to 6,000 families in rural Kenya.
The MoU comes shortly after the Chancellor Rishi Sunak set out a roadmap to cement the UK’s position as an open and global financial hub, and enhance relationships with jurisdictions around the world.