- Republican Presidential Candidate won the US elections conducted on November 5, becoming the 47th President of the United States of America (USA)
- Trump served as the 45th US President before he lost to the outgoing President, Joe Biden, in November 2020
- Biden withdrew the Trump administration Free Trade Agreement signed with Kenya in 2020, introducing the Strategic Trade and Investment Partnership (STIP) in 2022
- The STIP advocated for enhanced engagement on workers’ benefits, among other agreements, which Trump’s policy on immigrants does not support
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Kenya’s trade talks with the US could stall following the victory of Donald Trump as the 47th President.
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Republican Presidential Candidate won the US elections conducted on November 5, becoming the 47th President of the United States of America (USA)
Trump served as the 45th US President before he lost to the outgoing President, Joe Biden, in November 2020.
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Why Kenya’s STIP agreement with the US could stall
Biden withdrew the Trump administration Free Trade Agreement signed with Kenya in 2020, introducing the Strategic Trade and Investment Partnership (STIP) in 2022.
The STIP advocated for enhanced engagement and increased investments that benefit workers, consumers, and the business community.
Trump campaigned strongly against immigrant workers policy, maintaining that his win would make America great and free.
Saboti Member of Parliament Caleb Amis told TUKO.co.ke in an exclusive interview that Trump’s policies do not advocate for foreign aid as contained in the STIP.
“Trump abhors foreign aid as a means of developing Africa. He will not meet Ruto to dish out free sanitary towels and mosquito nets,” said Amisi.
The lawmaker, who is a professional in commerce, warned that the Trump administration could withdraw all US-funded programmes in Kenya.
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Trump could also delay the conclusion of the STIP, calling for fresh talks that will incorporate his 2020 FTA.
What Kenya govt said about STIP under Trump administration
However, the Kenyan administration remains adamant that the STIP agreement with America will continue despite the change in administration.
Treasury Cabinet Secretary (CS) John Mbadi described Kenya’s engagement with the United States of America based on multilateral trade agreements.
Mbadi said the bilateral talks initiated under the Joe Biden administration are less likely to be altered.
“America’s policy around economic engagement in Africa and Kenya as a whole usually does not change much whether the Presidency is won by a Republican or a Democrat. It remains stable. I do not expect much shift depending on Trump’s victory.
“Currently, our engagement with the US government is more at a multilateral level, where the US government supports the World Bank, and through that, we get support. The support is minimal when it comes to bilateral,” said Mbadi, while speaking to a local TV station.
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What to know about Kenya-US STIP
Kenya and the United States agreed on a Strategic Cooperation Framework to provide technical assistance and trade capacity building in Kenya.
The STIP focused on maximizing Kenya’s utilization of the African Growth and Opportunity Act trade benefits for the remaining years of the preference program, scheduled to expire in 2025.
The Framework was supposed to support the development and competitiveness of key agricultural value chains in Kenya.
How Ruto’s govt benefitted from STIP with the US
In May 2024, President William Ruto embarked on a four-day state visit to the United States of America.
Ruto and his entourage are poised to have brought back home multimillion-dollar investments and deals.
The head of state secured funding support for key projects, including the construction of the Nairobi-Mombasa Expressway and the Affordable Housing scheme.
Others included deals like the KSh 23 billion Coca-Cola investments that will see a KSh 175 million new beverage plant built in Nairobi.
Source: TUKO.co.ke
