UAE Company To Invest KSh 67.5b In Kenyan Economy After Inking Deal With Treasury

• Kenya and UAE's deal aims to explore and leverage investment opportunities in East Africa's largest economy
• The two countries signed a Comprehensive Economic Partnership Agreement (CEPA), allowing them to take advantage of food production and other opportunities
• UAE initiated bilateral trade deal talks with Kenya in 2022, and in the last year, non-oil trade increased to $3.1 billion (KSh 418.5 billion)

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

Kenya's National Treasury and ADQ, an Abu Dhabi-based investment and holding company, have agreed to create a framework for the United Arab Emirates (UAE) firm to invest $500 million (KSh 67.5 billion) in the economy.

The agreement aims to explore and leverage investment opportunities in East Africa's largest economy, which is expected to grow by five to six per cent in 2024.

Kenya and UAE signed a Comprehensive Economic Partnership Agreement (CEPA) earlier this year, allowing them to take advantage of food production, mining, technology, and logistics opportunities.

"This agreement strengthens the robust economic ties between the UAE and Kenya and underscores ADQ’s commitment to developing partnerships in key markets that complement our investment strategy. This will allow other nations to benefit from the considerable and diverse expertise within our portfolio.

We are confident that our investment will bring forth notable opportunities that will unlock tangible value and contribute to the economic growth of Kenya and the broader East African region, harnessing its vast potential for development," Mohamed Hassan Alsuwaidi, the managing director and chief executive officer of ADQ said.

What's Kenya's oil trade volume with the UAE?

Kenya has one of the most dynamic economies in East Africa, and the deal will create hundreds of jobs.

In 2022, the UAE initiated bilateral trade negotiations with Kenya, one of the first nations in the continent.

The UAE and Kenya's non-oil trade increased to $3.1 billion (KSh 418.5 billion) in 2023, a 26.4% year-over-year increase.

Which country tops in FDI?

Kenya attracted 63 projects and an influx of $2 billion (KSh 270 billion) in FDI capital in 2023, creating 7,819 jobs across various sectors.

The US was the leading investor, with 14 projects totalling $748 million (KSh 100.9 billion) in capital investment.

Trade between the US and Kenya was solidified through the US-Kenya Strategic Trade and Investment Partnership (STIP), launched in July 2022.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke