Kenya-UK sign Ksh.427B strategic deals to boost trade and investments

President William Ruto and United Kingdom Prime Minister Sir Keir Starmer have signed the renewed 5-year Kenya-UK Strategic Partnership pact that is set to unlock over Ksh.427 billion in investments.

State House Spokesperson Hussein Mohamed, in a statement issued on Tuesday, said the two leaders agreed on the deal following bilateral talks held in London.  

The investments are divided into four key pillars: Trade and investment, green growth and climate action, science and technology, and peace and security. 

To boost the innovation sector, the UK has committed to channeling Ksh.17.7 billion to benefit over 500 start-ups and support 5,000 digitally driven Small and Medium-sized Enterprises (SMEs). This is expected to unlock 30,000 new jobs in the digital sector. 

"The two nations have also committed to enhancing collaboration on artificial intelligence and other advanced technologies to foster inclusive and sustainable digital growth," the statement read in part. 

The UK has also pledged to facilitate Ksh.266.1 billion in new investments across Kenya and another Ksh.32.3 billion in capital markets funding to spur economic growth by 2030. 

In addition, the UK will establish a regional underwriting hub in Kenya's capital under the Nairobi International Financial Centre (NIFC). The hub is projected to manage up to Ksh.75.5 billion. 

"These developments reflect growing investor confidence in Kenya's economic and financial landscape."

To mitigate climate effects, the two countries committed to unlocking at least Ksh.35.5 billion towards green financing.

The projects are expected to address environmental challenges and promote sustainable development.