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New Straits Times
06-05-2025
- Business
- New Straits Times
Johari Ghani leading Malaysian delegation on three-day official mission to Kenya
KUALA LUMPUR: Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani is leading the Malaysian delegation on an official economic and technical mission to Kenya from May 6-8. The visit highlights Malaysia's stance in strengthening economic, trade and investment relations with African nations, particularly in the commodities and plantation sectors. Johari is scheduled to hold a bilateral meeting with the Ministry of Investments, Trade and Industry of Kenya. The meeting will focus on broadening cooperation in trade and investment, particularly in the palm oil sector among other key commodities. This includes exploring how both countries can contribute to the global palm oil production ecosystem. In addition, Johari will participate in dialogue sessions and roundtable engagements with industry players. The sessions aim to identify strategic areas for collaboration, strengthen trade networks, and promote Malaysian palm oil, the ministry said in a statement today. Official site visits to selected industrial facilities will be conducted to gain insights into Kenya's production landscape and explore further collaborative opportunities. Kenya holds strategic importance to Malaysia, both as a bilateral partner and as a gateway to broader regional markets. Kenya is a member of the East African Community (EAC), an intergovernmental organisation comprising eight countries. The EAC comprises Burundi, Congo, Kenya, Rwanda, Somalia, South Sudan, Uganda and Tanzania with a combined population exceeding 330 million. This makes the EAC a key economic bloc in sub-Saharan Africa, offering vast potential for market expansion. The EAC Customs Union, established in 2005, allows products entering any one member country such as Kenya to be freely circulated across the region without additional tariffs. This provides Malaysia with a cost-effective and efficient platform to enhance its exports, particularly palm oil, to the broader East African market. Kenya is currently Malaysia's largest importer of palm oil in the sub-Saharan African region. In 2024 alone, Kenya accounted for 42 per cent of Malaysia's total palm oil exports to sub-Saharan Africa, with Malaysia maintaining a dominant market share of 85 per cent in the country. Moreover, Kenya plays a leading role in shaping regional trade policies and currently holds the position of chair of both the EAC Heads of State Summit and the EAC Council of Ministers. This positions Kenya as a highly influential partner in advancing regional trade integration and offers Malaysia a strategic entry point into broader African markets. "This economic mission represents a timely and strategic platform to deepen Malaysia-Kenya bilateral cooperation, leverage Kenya's regional leadership, and expand Malaysia's footprint in East Africa. "It reaffirms Malaysia's commitment to responsible, sustainable, and mutually beneficial trade practices, while identifying new global opportunities for growth in the commodity sector," the ministry said.
Zawya
30-04-2025
- Business
- Zawya
Kanga power! Homegrown cotton for a homegrown economy – United Kingdom (UK) & Kenya launch Lamu cotton processing facility
The UK, Kenya, and the County Government of Lamu have joined forces to lay the foundation stone at a new cotton processing facility in Lamu County. This four-way partnership between the UK, national government, local government and the private sector is a great example of the how the UK and Kenya are working together to deliver homegrown economic growth and jobs – a standout example of the tangible results that collaboration can achieve. Construction will begin immediately and is hoped to be completed by November 2025. The project is expected to support up to 5000 jobs in the next three years. The Hon. Lee Kinyanjui, Cabinet Secretary for Ministry of Investments, Trade and Industry, said:"The ginnery, by Thika Cloth Mills, will boost cotton uptake and thus earn farmers more income, create jobs, and provide raw material for the textile industry." "With the infrastructure supporting export including a special economic zone, Lamu Port and LAPPSET, Lamu will be the hub for investors in the region." British Deputy High Commissioner to Kenya, Ed Barnett, said: "The UK is a long-term partner for long-term economic growth in Kenya. This project is a testament to the power of partnerships – the UK, national government, and county governments have joined forces with the private sector to deliver 5,000 jobs and future economic growth." "This partnership will reduce reliance on imports, put money in the pockets of farmers. It will strengthen, stabilise and support a sustainable homegrown cotton industry in Kenya. Long live Kenya kanga!" This partnership directly supports the Government of Kenya's textiles and garments national development priority, by reducing reliance on foreign imports – which currently make up around 90% of cotton in the country. Kenya currently produces 3,000 bales of cotton per year, whilst the total demand ranges between 140,000 – 260,000. This partnership will develop a homegrown cotton industry and allow Kenyan businesses to capitalise on economic opportunities within their own country. The processing plant will create jobs and stimulate economic growth in Lamu County. It is hoped the facility will triple cotton production in Lamu from 2,000 bales per year to 6,000 over the next three years. This will also support local cotton farmers as the facility will be built close to farms, reducing transportation costs as well as providing them with a larger market for their produce. The proposed plant will not only source cotton from Lamu County but from Kilifi, Tana River, Kwale, and Taita Taveta counties. The reduced need for transportation is expected to decrease the carbon footprint of the textile production process by 262 metric tons of carbon dioxide every year, supporting Kenya's climate ambitions. This project will also have a positive social impact and place a significant emphasis on providing substantial economic opportunities to women and promoting gender equality, as the employees at the processing plant are expected to be at least 50% women. The programme falls under the UK's Sustainable Urban Economic Development programme (SUED), which aims to add value to Kenyan agricultural produce before export. The UK has provided seed-funding to de-risk the investment for all partners involved. The Government of Kenya has provided additional funding, with the remaining funds being provided by Thika Cotton Mills. Lamu County sealed the deal by providing land for the ginnery. SUED has been operational in Lamu for four years, and this is the programme's fourth value-chain project in the county. It has secured investors for the cotton ginnery as well as fish processing, coconut processing, and cashew nut processing facilities. Across Kenya, our £8 million seed fund investments through SUED have helped unlock £48 million in private capital and supported the creation of more than 10,000 jobs. The UK Government partners with Kenya across multiple sectors in Lamu County. The UK supports: trade and investment though the development of infrastructure and customs processes at Lamu Port; regional security through programmes to counter violent extremism; and environmental programmes to reduce plastic pollution and increase biodiversity. Distributed by APO Group on behalf of British High Commission Nairobi.
The Star
24-04-2025
- Business
- The Star
Feature: Kenyan traders target vast Chinese market to boost agricultural exports
NAIROBI, April 24 (Xinhua) -- In the lush highlands of the central Kenyan county of Murang'a, Newton Ngure, a middle-aged entrepreneur, has forged long-term friendships with smallholder farmers who grow Hass avocado for local and international markets, with China emerging as a promising destination. "China is a huge market for our agricultural products, and more so for Hass avocado," he said. "It will be good for Kenyan exporters to comply with certification requirements to increase our export volumes." Since launching his start-up in Nairobi, Kenya's capital, Ngure has partnered with farmers, aggregators, and other players in the Hass avocado value chain. Now, the Kenyan business owner has set his sights on the Chinese market. On Thursday, Ngure spoke on the sidelines of the fourth China-Africa Economic and Trade Expo (CAETE) Promotion Conference, which brought together senior government officials, diplomats, industry executives, and budding entrepreneurs. As with Ngure who graced the half-day event, dozens of Kenyan traders also expressed the same desire to participate in this year's CAETE, which will be held in Changsha, the capital of central China's Hunan Province, from June 12 to 15. Ngure said his company is in talks with potential Chinese importers, aiming to ship 2,000 metric tons of Hass avocados each month. In the long term, Ngure said his firm, which primarily focuses on aggregation, aims to export up to 200,000 metric tons of Hass avocados to China, upon fulfilling all safety and hygiene standards mandated by Chinese customs. "China's market really has an appetite for Kenyan products, and it will be good that we look at the opportunities and comply," Ngure said. "We are working with various stakeholders to consolidate consignments for Hass avocado sourced countrywide. It is an opportune moment for us to venture into the Chinese market." Josephine Ndikwe, head of trade and exports at Jotim Coffee Limited, is also preparing to attend the 2025 CAETE with ambitions to solidify new partnerships. Her company, which specializes in premium coffee, has exported to China since 2022 -- with volumes rising due to favorable customs policies and growing consumer interest. Having partaken in the 2023 and 2024 editions of CAETE, Ndikwe hopes this year's expo will expand her company's footprint in the Chinese market. "What I look forward to is expanding my market reach in China. We also want to venture into exporting already finished goods. That is roasted coffee, Arabica beans because we believe the market in China is big," Ndikwe said. She added that against the backdrop of U.S. punitive import tariffs, China emerges as an alternative market for Kenya's coffee growers and exporters. According to Ezekiel Mosongo, head of bilateral trade at the Ministry of Investments, Trade, and Industry, Kenya aims to increase the volume of agricultural commodities exported to China, such as Hass avocado, coffee, macadamia, cut flowers, black tea, and aquatic products, as economic ties between the two sides are flourishing. Mosongo hailed China for reducing levies on Hass avocado and cut flowers imported from Kenya, adding that the government has prioritized value addition to boost the competitiveness of agricultural products overseas. Simon Gakinya, founder and managing director of Mount Kenya Specialty Tea and Coffee Co., Ltd., believes that policy harmonization and dialogue among businesses will be key to boosting the export of Kenya's agricultural commodities to China.
The Star
23-04-2025
- Business
- The Star
Kenya launches strategy to boost exports
NAIROBI, April 23 (Xinhua) -- Kenya on Wednesday launched the Route to Market Strategy 2025-2027, designed to position the country as a globally competitive exporter of high-quality and sustainable goods. Juma Mukhwana, principal secretary in the Ministry of Investments, Trade and Industry, told journalists in Nairobi, the capital of Kenya, that the blueprint calls for the expansion of the export footprint beyond traditional destinations by leveraging instruments such as the African Continental Free Trade Area to unlock new and underutilized markets. "The strategy provides for the development of a centralized digital platform that equips exporters with real-time data, market insights, and readiness tools," Mukhwana said. Tobias Alando, chief executive officer of the Kenya Association of Manufacturers, said the strategy serves as a roadmap to transition the country from exporting raw commodities to high-value processed goods, including essential oils, dried fruits, and packaged beverages. Alando observed that the unveiling of the plan comes at a critical juncture, as countries grapple with various trade-related challenges, including an uncertain future on exports to the United States, pressure on global logistics, as well as tightening climate regulations across major markets. Susan Mang'eni, principal secretary in the State Department of Micro, Small and Medium Enterprises Development, said the strategy provides an outline to enhance the contribution of the export sector by increasing employment opportunities, particularly in rural cooperatives and special economic zones.
