Finance & Economy | News & Insights

India can participate in Kenya’s Vision 2030, says Dr. Erick

Published: April 15, 2024
Author: TEXTILE VALUE CHAIN

Indian investors can benefit from National Industrialisation Policy 2012-2030

Kenya is the largest market in East Africa and a leading Financial and Technology Hub. India is one of the top investors in this country and at least 200 Indian companies are operating across pharmaceuticals, telecom, IT, banking and other sectors. All India Association of Industries (AIAI) and MVIRDC World Trade Center Mumbai organised a Luncheon meeting with Dr. Rutto K. Erick, President, Kenya National Chamber of Commerce and Industry to discuss emerging areas of economic collaboration between both the countries.

Speaking on this occasion, Dr. Eric remarked, “We invite Indian industry to participate in Kenya Vision 2030 to transform the country into a middle income rapidly industrializing economy. Kenya is a safe place for foreign investors and Indians have been doing business in the country for more than 120 years. Indian industry can invest in apparel, clothing, mining, IT & BPO, agro-processing, renewable energy in Kenya by availing incentives under its National Industrialisation Policy 2012-2030. Under this policy, Indian investors can avail tax holiday for 10 years, following which there will be 15% tax for next 10 years and 30% tax in the subsequent years for investment in Special Economic Zones and Export Processing Zones. There is no tax or policy restriction on foreign investors for repatriating dividend, profit or interest from their investment.”

Dr. Erick invited India’s technical cooperation for developing industrial clusters and parks to promote manufacturing and MSMEs. Kenya is a member of the African Continental Free Trade Agreement (AfCTA) and hence Indian industry can consider Kenya as their regional hub for the entire Africa.

Specifically, he invited Indian industry to explore public private partnership (PPP) projects in infrastructure sectors such as water, solar energy, wind energy, hydro-power, geothermal, ports, roads, railways and so on.

In the tourism sector, Kenya Wildlife Service (KWS) seeks to lease 13 tourist camps to private investors. Kenya is also looking for Indian companies to develop its proposed Nairobi International Convention and Exhibition Centre (NAICEC) that will have world-class exhibition, conference, parking, hospitality and tourist attractions.

Kenya is leading in renewable energy as 92% of its grid is powered by green energy and it plans to increase further the renewable energy capacity in the country, he added. “In the next decade, Kenya will invest at least USD 4 billion in infrastructure sector. We want Indian companies to participate in this opportunity.”

Dr. Erick pointed out that India’s EXIM Bank has extended USD 250 million line of credit for industrialization in small and medium enterprises (SMEs). This offers huge export opportunity for Indian companies as 85% of the project equipment’s should be sourced from India, under the terms of this line of credit.

Dr. Erick suggested Indian industry to manufacture vaccines in Kenya, which is almost dependent on imports currently. “The market size for vaccines in the region is USD 5 billion, which can be explored by Indian pharma companies.” India can also explore business in agriculture and food processing, where is Kenya is dependent on imports for 40%.

Dr. Erick highlighted value addition opportunities in mining sector, especially in copper, iron ore, platinum, gold refinery and so on. He said, “Indian companies can bring technology and value addition for processing copper, quartz, mica, manganese and chromite, which can be mined in Kenya.”

Dr. Erick hinted at partnership opportunities in the digital sector and especially in the fintech sector, where Kenya is leading in mobile payments.

Earlier in his welcome address, Dr. Vijay Kalantri, President- All India Association of Industries and Chairman, MVIRDC World Trade Center Mumbai remarked, “Kenya is the second largest trade partner of India in East Africa and we need to strengthen this commercial relation by signing free trade agreement.”

Dr. Kalantri suggested Indian companies to consider Kenya as the gateway to the East Africa and also to the entire Africa. He said, “Kenya is a home away from home for Indians as around 70% of businessmen and taxpayers in Kenya are persons of Indian origin. One of the largest banks in Kenya is owned by Indian. More Indians can explore investment opportunities in Kenya by availing the government incentives in that country.”

In tourism, India is also the fifth-largest source of inbound tourists for Kenya while India is a preferred destination for medical tourism by Kenyan citizens with significant numbers seeking medical treatment in India, Dr. Kalantri informed.

In his address, Mr. Ramavtar Goenka, Honorary Consul, Honorary Consulate of Kenya in Mumbai pointed out that Kenya is not only an attractive destination for trade & investment, but also tourism. “Kenya attracts 2.2 million tourists annually and it is famous for natural beauty and wildlife. There is huge scope to promote tourism between both the countries,” he added.

The meeting was attended by Capt. Somesh Batra, Vice Chairman, MVIRDC WTC Mumbai, Ms. Rupa Naik, Executive Director, MVIRDC WTC Mumbai and members of trade and industry.

During the event, All India Association of Industries (AIAI) and MVIRDC WTC Mumbai signed an MoU with Kenya National Chamber of Commerce and Industry (KNCCI) to promote trade, investment, tourism, education and technology exchange. This chamber was established more than 58 years ago and it has more than 50,000 Kenyan companies across diverse sectors as members.

Dr. Rutto K. Erick, President, Kenya National Chamber of Commerce and Industry (2nd from right) exchanging MoU with Dr. Vijay Kalantri, President- All India Association of Industries and Chairman, MVIRDC World Trade Center Mumbai (3rd from right). Also seen in the photograph are: (from left to right): Ms. Rupa Naik, Executive Director, MVIRDC WTC Mumbai, Mr. Ramavtar Goenka, Honorary Consul, Honorary Consulate of Kenya in Mumbai and Capt. Somesh Batra, Vice Chairman, MVIRDC WTC Mumbai

Dr. Rutto K. Erick, President, Kenya National Chamber of Commerce and Industry (middle) being felicitated by Dr. Vijay Kalantri, President- All India Association of Industries and Chairman, MVIRDC World Trade Center Mumbai. Also seen in the photograph is Capt. Somesh Batra, Vice Chairman, MVIRDC WTC Mumbai

 

 

Related Posts

The Response Company Gets Ready for its Official Launch with a Dedicated App