UGA IPSO | News and Events

UGA International Public Service and Outreach | News and Events

Barriers to Trade with US Spelt Out

Daily Nation
September 14, 2004

Trade and Industry minister Mukhisa Kituyi addresses an American delegation exploring business openings in Kenya during a seminar at a Nairobi hotel, yesterday. With him is the University of Georgia project co-director, Mr Glenn Ames. Photo Fredrick Onyango.

NAIROBI—Poor communication network has been singled out as the major obstacle to trade between the US and Kenya. A US team exploring business openings in Kenya also mentioned the lack of direct air link as another problem.

Speaking at a Nairobi hotel, Mr. Stephen Seda of the East Africa-America Business Council said only three per cent of Kenya's exports entered the US market, compared to Comesa's 46 per cent.

And Ms. Robin Pearson, an executive of an Atlanta-based company, said: "We are ready to do business with any country, so long as we are assured of quality products delivered on time." She urged Kenyans to invest in the garments industry and benefit from the US-initiated African Growth and Opportunity Act which allows African states to export some products there duty-free.

Speaking at the function, Trade and Industry minister Mukhisa Kituyi said that trade was more important to the developing countries than aid. "It's more beneficial to Kenya if her goods gain access into the Western world," Dr. Kituyi said.

Mr. Edward Yasi of the US embassy asked Kenyan investors to focus more on textile, apparels, horticulture and logistics in their quest to diversify trade. Mr. Yasi said business opportunities in transport, logistics and shipping in Kenya was immense given the strategic location of the port of Mombasa.

If managed well, the official noted, tourism had the potential of marketing Kenya to the outside world as well as generating foreign exchange.

The chief executive of the Export Promotion Council, Matanda Wabuyele, said though Agoa provided varied opportunities, Kenya had only concentrated on the textile and apparel sub-sector. "We are therefore faced with a challenge of not only increasing the volume of our exports to the US market but also diversifying the range of exports with more value added components," said Mr. Wabuyele.