President Uhuru Kenyatta’s diplomatic adventure has won Kenya two key deals with U.S. President Donald Trump, lifting the country’s geopolitical and trade influence in Africa, set to flow in billions in aid and trade.
The two key wins are the inclusion of Kenya in the Millennium Challenge Corporation (MCC), an independent U.S. government agency that provides grants and assistance to developing countries that meet rigorous standards for good governance.
Kenya qualified for the MCC in December 2019, the first time since the agency was formed in 2004 during the administration of President George W. Bush.
The second key win is the choice of Kenya as the first African country that will start trade negotiations with the U.S.
U.S. already has a preferential trade agreement with 39 African countries, including Kenya, known as Africa Growth and Opportunity Act (AGOA). However, the new deal will not replace AGOA.
AGOA was introduced by President Bill Clinton as part of the US rapprochement to Africa by granting certain goods from Africa free access to the U.S. market.
Two weeks ago, a delegation from MCC, led by its Chief Executive Officer Sean Cairncross, visited Nairobi to discuss the development of an MCC threshold program to reduce poverty in the country through economic growth.
The inclusion is attributed to what is now emerging as a deepening relationship between Uhuru and Trump.
“The decision by MCC’s Board of Directors to unanimously select Kenya for a threshold program recognizes the Government of Kenya’s commitment to strengthening Kenya’s democratic institutions by combatting corruption, maintaining sound economic policies, and further investing in its citizens,” CEO Sean Cairncross said.
“This initial engagement visit marks the beginning of a new chapter in the United States’ effort to build a strong partnership between the Government of Kenya,” the CEO said.
During the threshold program development process, MCC and the Government of Kenya will jointly conduct a rigorous economic analysis—called a “Constraints to Economic Growth Analysis”—to determine the most significant factors constraining economic growth in the country.
This analysis will inform the development of MCC’s focus and investment under the new threshold program. Program development typically requires 18-24 months before a grant agreement can be signed.
Uhuru – Trump new trade deal
Bloomberg just reported that Kenya and the U.S. are expected to announce negotiations on a free-trade agreement next week.
This will be America’s first such deal with a sub-Saharan country, a person familiar with the plans said.
According to Bloomberg, Trump administration wants the accord to be a model for future pacts with other nations in the region.
An announcement on the discussion will coincide with Kenyan President Uhuru Kenyatta’s visit to Washington next week, the news agency reported.
It quoted Macharia Kamau, Kenya’s Principal Secretary for Foreign Affairs confirming that negotiation on the new deal is a top agenda of the visit where Uhuru is expected to hold discussions with Trump.
Kenya exported goods worth Sh36.5 billion to the U.S. in 2018 and imported goods worth Sh64.4 billion from the country in 2018, according to the U.S. government data.