The Export-Import Bank of India has announced a significant increase in its lending to Kenyan businesses, raising the facility to Sh32.5 billion. This expansion follows the inauguration of a representative office in Nairobi’s Westlands, aiming to bolster trade between India and the East African region. The opening ceremony, attended by Prime Cabinet Secretary Musalia Mudavadi, marked a milestone in strengthening economic ties.
Mudavadi, who also serves as the Foreign and Diaspora Affairs cabinet secretary, highlighted the bank’s commitment to supporting Kenyan enterprises. He noted that the increased lending facility was a key outcome of President William Ruto’s State visit to India last year. This strategic move aligns with the broader objective of enhancing trade relations and economic cooperation between the two nations.
Vivek Joshi, secretary of the Department of Financial Services in India’s Ministry of Finance, emphasized the significance of the new office. Serving 11 countries in the region, the representative office is poised to facilitate new business opportunities and strengthen India’s trade relationships with East Africa. Joshi expressed confidence that this initiative would elevate economic interactions to greater heights.
The countries served by the new office include Kenya, Burundi, the Democratic Republic of Congo, Republic of Congo, Djibouti, Eritrea, Ethiopia, Rwanda, Sudan, Tanzania, and Uganda. India maintains a positive trade balance with these nations, collectively amounting to a trade surplus of Sh757 billion ($5.8 billion) in 2022. This surplus underscores the robust trade dynamics and mutual benefits of the partnership.
India’s strategic focus on East Africa is further illustrated by its trade relations. Tanzania emerged as India’s largest trade partner in the region in 2023, accounting for over 43 percent of exports. Kenya followed closely, contributing 31.4 percent of India’s exports to East Africa. These figures reflect the deepening economic interdependence and potential for future growth.
For Kenya, India stands as the second largest import source after China, with goods and services imports amounting to Sh269 billion last year. This data from the Kenya National Bureau of Statistics highlights the critical role India plays in Kenya’s trade landscape. The enhanced lending facility and new representative office are expected to further solidify this partnership, driving economic growth and development in the region.
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