The Confederation of Indian Industry (CII) has launched the India-Kenya Business Council (IKBC) to boost Indian investments in Kenya. Facilitated by the CII, the IKBC aims to be a central platform for Indian companies to fortify their presence in Kenya and foster reciprocal investments.
The council is structured to facilitate the exchange of information on various business aspects, encompassing import-export, joint ventures, technology transfers, contract manufacturing tie-ups, and investment promotion in both nations.
During the India-Kenya business forum in Nairobi, V. Muraleedharan, India’s Minister of State for External Affairs and Parliamentary Affairs, underscored Kenya’s strategic geographical location and robust infrastructure as a crucial gateway for the East African region. He emphasized that Kenya provides unparalleled access to regional markets, making it an ideal hub for trade and investment. Muraleedharan acknowledged that doing business in Kenya extends beyond catering to the local market of 54 million Kenyans. It also provides an opportunity to reach out to the entire East African region, with a population exceeding 300 million.
Trade CS Rebecca Miano welcomed the establishment of the IKBC and encouraged traders to leverage economic cooperation, urging the organization of activities that promote trade. She recognized India’s achievements in ICT, pharmaceuticals, manufacturing, infrastructure, and agriculture, aligning with Kenya’s priorities and creating significant opportunities for collaboration.
The forum highlighted the potential of the youthful populations in both countries as a promising investment tenet. India boasts the world’s largest youth population, with over 65% of citizens below the age of 35, while Kenya has approximately 75% of its population below the age of 35.
As of 2022, the trade balance favored India, standing at KES 211.42 billion. Statista data for the 2023 financial year highlighted Tanzania as the largest recipient of Indian exports in the East Africa region, with Kenya ranking second. Kenya received USD 3.3 billion (KES 502.7 billion) in inflows from India. Key exports from Kenya to India include soda ash, vegetables, tea, leather, and metal scrap. Conversely, Kenya primarily imports petroleum products, pharmaceuticals, steel products, machinery, and power transmission equipment from India.
