Six new co-investments totaling $55 million (Sh7.5 billion) in the clothing industry have been agreed upon by Kenya and the US. This takes the total number of agreements secured in the past month to 20, as the administration actively lobbies for greater US investment. Trade, Investment, and Industry CS A roadshow in New York is part of a trade expedition that Moses Kuria is leading to the United States.
The 14 original accords announced by President William Ruto at the American Chamber of Commerce Summit (AMCHAM) in Nairobi in March have been expanded upon by US Ambassador to Kenya Meg Whitman during the ongoing trade mission.
Prosper Africa and the US Agency for International Development (USAID) both provide support for them. A federal program called Prosper Africa links US and African companies with fresh customers, suppliers, and investment prospects.
Whitman points out that recent events show how committed the US is to enhancing its economic ties with Kenya.
The US government stated in a statement that the six new co-investments with American and Kenyan clothing firms will link American purchasers with Kenyan producers, generating more employment in Kenya and all over the US by making it simpler to conduct business together.
In accordance with the new agreements, the clothing company MAS Intimates will educate Kenyan workers and generate jobs in the formal sector to enhance the production of high-quality clothing created in Kenya.
On the other hand, discount clothing company United garment Liquidators (UAL) will boost garment exports to the US market by constructing a one-stop shop in Kenya that synchronizes all phases of the production process from “Farm to Fashion.”
By incorporating new production lines, Mega (Mega Sports Apparel) will increase the company’s capacity for production. The purchase of machinery would help Kenya’s Coast Apparel improve production and export capability, resulting in additional jobs for women and young people. As part of the agreement, Best Lifestyle, which is situated in Athi River, will increase its production in Kenya and hire and train additional workers.
A facility in Kenya will be built by the US-based packaging company Nexgen Packaging to produce tags and labels for clothing and footwear that will be sold both inside and outside of Africa.
Additionally, President William Ruto pledged that Kenya would review the Digital Services Tax, eliminate the VAT on services exported, and address issues with VAT refunds.
Ruto assured investors that a “more predictable tax regime” will begin in June this year and that all validated tax refund claims would be paid out within six months of verification.
During his speech at the Financial Services Forum-US-Kenya Business Roadshow in New York, Moses Kuria, the Investment, Trade and Industry CS who is leading a trade mission to America, stated that Kenya would have passed legislation in six weeks that would put President William Ruto’s promises into action. “In six week’s time, Kenya will have passed legislation that will bring to work the promises by President William Ruto,” he said.
