RIYADH, 1 April 2007 — Kenyan President Mwai Kibaki has invited Saudi businessmen to invest in his country and take advantage of the development of the infrastructure and tourism sector in Kenya.
The president explored with Saudi businessmen ways to promote bilateral trade between Kenya and Saudi Arabia after attending the two-day 19th Arab Summit which concluded on Thursday. He was accompanied by Kenyan foreign minister and senior officials.
“By investing in Kenya you have the opportunity to market your products to the larger market in Africa and elsewhere in the world,” he said to Saudi businessmen in the Riyadh Chambers of Commerce and Industry (RCCI) yesterday.
“There are numerous opportunities for investments in agriculture, information and communication technology, tourism, infrastructure development, including roads, railways, sea ports and airports,” he added.
The president mentioned some of the incentives given to foreign investors who invest in Kenya such as guarantee against expropriation, repatriation of capital and profit, 100 percent ownership, and permission to carry forward the loss.
In addition, he said, additional incentives are given such as immediate input, and a 10-year tax holiday.
“In agriculture, for example, Kenya is one of the largest producers of tea and coffee. We are keen on progressing in these areas which will not only bring higher profits to investors but also improve earnings to farmers,” he said.
He said other investment opportunities were in the cotton and apparel industries. Those investors could then take the opportunity of exporting their products to the United States. The livestock and the fisheries industries were two other areas with potential investment venues.
Kibaki said his country was recognized internationally for being a tourist attraction, adding that his government was urging investors from Saudi Arabia to visit his country and see the opportunities firsthand.
He noted how the tourism industry in Kenya was witnessing adequate growth capacity.
“I therefore urged Saudi investors to join us in the development of new hotel facilities, recreation and amusement parks, as well as health centers,” he said.
He also urged Saudi business community to participate in the fast developing manufacturing sector, particularly in sugary refining, engineering manufactory, and assembly of electronic equipment and plastic.
And since infrastructure is crucial to the development of any industry, Kubaki asked Saudi businessmen to take the opportunity to invest in the construction of roads, airports, and railways.
“These can be implemented through a concessions system,” he noted.
Finally, he said investment opportunities existed in the industries of housing, health, and education.
He also urged the Kingdom to increase its imports from his country. “I note that the Middle East takes only three percent of Kenya’s export. This could be increased by Saudi Arabia increasing its imports of meat, daily products, tea, leather products, and minerals,” he said.
Kubaki said the aim of his visit to the Kingdom was mostly to strengthen the historical ties between Kenya and Saudi Arabia. He noted how the Kenyan coastline has welcomed over the centuries many visitors from the Arabian Peninsula.
“The results of these contacts are evident in the large Muslim population along the Kenyan coast. And above all, the Swahili language whose vocabulary contains a large quantity of Arabic words,” he said. The word Swahili comes from the Arabic word “sawahil”, which is the plural of “Sahel”, meaning coast.
The president thanked the government of Saudi Arabia for inviting him to the Kingdom.
At the end of his speech, the president said: “Ladies and Gentleman...” He paused for two seconds, looked up, and did not find a Saudi lady present among the Saudi businessmen. “Oh, no ladies are here,” he continued, to the laughter of the Saudi and Kenyan audience.
RCCI Chairman Abdulrahman Al-Jeraisy briefed the president of the Kingdom’s exports to the global market, which includes a wide variety of petrochemical products, steel, dairy products, dates and its products, furniture, carpets, assembled computers, smart cards, and more.
Al-Jeraisy welcomed the invitation from the Kenyan president, as both parties agreed that a visit would be arranged for a Saudi delegation to visit the country in the near future.
The establishment of the first Saudi-Kenyan Business Council was also proposed by Al-Jeraisy to the president. They both agreed that procedures would start in the formation of this council as soon as possible.