William Ruto Urges Businesses To Trade In Rupees After Licensing India Exim Bank Operations In Kenya

• President William Ruto welcomed India Exim Bank operations in Nairobi, Kenya, as the East Africa regional branch
• Industrialisation Principal Secretary (PS) Juma Mukhwana said the move will enhance trade and investment between Kenya and India
• Mukwana announced the development, allowing Kenya businesses trading with Indian firms to transact using Rupees

TUKO.co.ke journalist Wycliffe Musalia brings over five years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

President William Ruto's administration has urged Kenyan traders doing business with their Indian counterparts to trade using Rupees.

Industrialisation Principal Secretary (PS) Juma Mukwana said the move will ease the cost of production currently exacerbated by the devalued shilling against the dollar.

How much is Kenya shilling in Indian Rupee?

Data from the Central Bank of Kenya (CBK) showed that the Kenya shilling traded at KSh 153 per US dollar compared to KSh 1.83 per Indian Rupee as of Tuesday, December 5.

“Kenya will trade in Rupees. This will cut the cost of production, given that the Kenya shilling is currently devalued against the US dollar,” said Mukhwana, as quoted by People Daily, during the opening session of the International Textile and Machinery Exhibitions (ITME) Africa and the Middle East 2023 at KICC.

This followed the licensing of India Exim Bank operations in Nairobi as the East Africa regional office.

Why India Exim Bank sets base in Kenya

Ruto said the move is part of the Kenya Kwanza Bottom-Up Transformation Agenda, which is aimed at attracting foreign investment into the country.

"Investment is a key enabler of Kenya’s social and economic development. Attracting and retaining foreign investment from across the world is integral to the Bottom-Up Transformation Agenda," said Ruto.

The government estimated that 60 Indian companies have invested in various sectors in Kenya, anticipating more through the development.

Why William Ruto visited India

The head of state flew to India for a two-day visit to hold bilateral talks with Prime Minister Narendra Modi and his counterpart, Droupadi Murmu.

The discussions revolved around agriculture, trade, investment promotion, and forging healthcare partnerships, particularly in pharmaceutical production, among other key development topics.

The president spoke at a trade and investment forum, emphasising the significant potential for economic cooperation between the two states.