Kenya: Bold New Bilateral Agreements Cement U.S.-Kenya Ties

Kenya signed several pacts with the US during talks between US President Barack Obama and Kenya’s President Uhuru Kenyatta, signalling a deepening of bilateral relations in trade and investment.

Addressing a joint press conference, President Obama said discussions on the prospects of introducing direct flights between the two countries were ongoing.

“It is our hope that this will be actualised very soon so that we can ease the movement of people and goods between the two countries,” he said.

The two countries also came up with an action plan that will see increased financial support for the military, judiciary and police. It is also expected that the Kenyan military will receive counterterrorism aid under the Peacekeeping Operations programme through the Partnership for Regional East Africa Counterterrorism.

Prior to the talks, Kenya was expected to seek more funding in addressing the current security challenges posed by Somalia-based Al Shabaab terror group.

In 2015, the country received $100 million in a US counter-terrorism aid package, up from $38 million the previous year. Out of this amount, $95.25 million will go to the military while the remaining $4.75 million goes to the police.

The bilateral talks also centred on the instability in the region because of current conflicts in South Sudan and Burundi, with President Obama calling on the warring South Sudan parties to hasten the signing of peace agreements.

“We have seen the elections carried out in Burundi against the wishes of the majority. It is our stand that these elections were not credible and we hope that both the Burundi government and opposition will enter into dialogue to unlock this political stalemate,” Mr Obama said.

The United States announced that Kenya will be part of the Determined, Resilient, Empowered, AIDS-free, Mentored and Safe initiative (DREAM), which will see the country receive additional support to help it fight HIV/Aids and other communicable diseases. The initiative aims at reducing new HIV infections among adolescent girls and young women.

President Kenyatta said that the health issues they had discussed were critical and hoped that the US support would boost the fight against HIV and Aids.

The question of corruption also formed a key part of their address, with President Obama saying he was happy with Kenya’s progress on fighting corruption. He added that the US had signed a joint commitment with Kenya in order to increase transparency and accountability between the two countries.

“It is also important to note that clean energy is top of the US agenda and we also agreed to have an agreement on how we can help Kenya deal with the climate change challenges,” President Obama said.

On poaching and wildlife, the US is proposing a new rule that will see a ban on sale of illegal ivory across all states, a move that is geared to help Kenya in its war against elephant and rhino poaching.

On gay rights, President Obama called on Kenyan government to respect the rights of all law abiding citizens.

“When you start treating people differently because they are different that is when freedoms begin to erode,” he said.

On Friday, Kenya’s Foreign Affairs Secretary Amina Mohamed and US Secretary of Commerce Penny Pritzker signed various deals that will see the former gain investments and support to boost its infrastructure, health and taxation sectors.

“These agreements also demonstrate the desire to strengthen the existing warm and friendly relations and affirm the necessity of promoting co-operation in our respective countries,” Ms Mohamed said.

The signing of the double taxation policies heralds Kenya’s efforts to improve the taxation regimes aimed at eliminating double taxation. On Thursday, Kenya also signed another double taxation agreement with the Netherlands.

“The memorandum of understanding concerning the development and implementation of strategic infrastructure priority projects will allow development of strategic projects in Kenya, including the development of a transport corridor connecting a new port at Lamu to Ethiopia and Southern Sudan,” Ms Mohamed said.

The two countries also signed the Co-operation in Threat Reduction Biological Engagement Programmes Agreement, which will facilitate efforts to reduce threats from naturally occurring diseases, biological attacks or “unintentional release of biological pathogens and toxins and the risks posed by non-state actors of bioterrorism.”

“The programme will see the two countries agree on projects relating to potential biological threats, including naturally occurring diseases, biological attacks or unintentional release of pathogens or toxins and biological weapons- related pathogens and toxins, materials, processes and knowledge,” Ms Mohamed said.

The areas of co-operation under the agreement include implementation of a comprehensive, national programme for biosafety and biosecurity. This agreement will aid Kenya’s export diversification.

In an interview with the Financial Times in Nairobi, Donald Gips, co-chair of the Africa Business Initiative at the US Chamber of Commerce, said that the majority of American investors are now being pulled to Africa by the massive opportunities and the growth rates of these emerging economies.

“Obama’s visit will be a big boost for African markets, especially now that the confidence the US investors are looking for is at the centre of the president’s trip. Most US businesses will then come and invest in these new opportunities that the summit offers,” Mr Dips said.

Meanwhile, US President Barack Obama defended his Power Africa initiative against claims that the $7 billion plan has failed to achieve its goal of doubling access to electricity in Africa.

“We are well on our way,” Obama said as he met five vendors in Nairobi using solar technology to further the project’s goal of creating 30,000 Megawatts of “new, cleaner electricity generation capacity”.

In 2013, Obama launched the initiative to much fanfare, but reports have suggested that it has so far failed to produce any power.

Obama insisted it was just a matter of time.

“If you wanted to start a power plant in the United States, it doesn’t take a year to get that done,” Obama said, commenting on those reports.

“What’s happening is that financing transactions have been completed, the plans are under way and the work that is being done now you are going to start seeing.”

Much of the funding for the project is expected to come from the Export-Import Bank of the United States, which has been frozen because of a political dispute in Washington.