Kenya seeks to increase its flower, tea and coffee exports to Saudi Arabia, with a plan to double the value in the shot-term.
This follows an MoU between the Kenya National Chamber of Commerce and Industry (KNCCI) and the Federations Council of Saudi Chambers (FCSC) on Monday.
According to KNCCI president Richard Ngatia, the agreement that focusses on trade opportunities targets to improve the balance of trade currently hugely titled in favour of Saudi Arabia.
Pre-Covid-19 pandemic (in 2019), Kenya’s imports from Saudi Arabia were valued at Sh127.2 billion, the Economic Survey 2020 shows, with refined petroleum products as the top product with an import bill of $h843 million (Sh96.3 billion).
Kenya also imports distillation products, plastics and fertiliser from Saudi.
The import bill is fourteen times more than the value of Kenya’s exports which totalled Sh8.9 billion, a drop from Sh10 billion a year earlier. Cut flower was the top export commodity valued at $20.4 million.
Other commodities Kenya is keen to export under the agreement are mate and spices, live trees, plants, bulbs, roots, edible fruits, nuts, peel of citrus fruit and melon.
Ngatia and FCSC Secretary General Hussain Alabdulkader signed the MoU during the Kenya Business Forum at the Council of Saudi Chambers.
“The MoU will ensure the Chambers facilitate trade information, services and opportunities to improve the balance of trade." Ngatia said.
Kenya has also negotiated for employment opportunities which will see Saudi employ at least 100,000 Kenyans, majority of them youths.
This followed a meeting between Kenya’s Foreign Affairs CS Raychelle Oamo and Abdullah Nasser Abuthnain, Vice Minister of Human Resource and Social Development for Labour in Riyadh.
The meeting focussed on laws governing employment of Kenyan immigrants in Saudi Arabia.
Kenya is keen to have Saudi Arabia improve working conditions for her citizens.
Saudi and the United Arab Emirates are top labour export markets for Kenya, mainly domestic workers.
