By Ronald Owili
Kenya and the United States expect to iron out outstanding issues on technology policies and food security in the third round of the Bilateral Strategic Dialogue scheduled for July this year.
During the second round of the Bilateral Strategic Dialogue (BSD) between Kenya and the USA held in Washington DC and co-chaired by Foreign and Diaspora Affairs Cabinet Secretary Alfred Mutua and Secretary of State, Anthony Blinken, Investment, Trade and Industry Cabinet Secretary Moses Kuria was optimistic that Kenya will review key policies targeting information, communications and technology within the next financial year in July.
The US has been backing the review of the Digital Service Tax which requires tech companies such as Google, Meta and Microsoft to pay 1.5pc of their annual gross turnover to the taxman, a move that tax experts say could cost Kenya billions in lost revenue.
“We pitched on the policy changes, policy adjustment but now over the next eight weeks because we are in that face in Kenya where we have a window to actually implement the things we have agreed whether it’s on digital tax, ownership of ICT and all the other policy arrangement,” said Kuria.
Additionally, Kenya has committed to repeal the requirement that ICT companies setting base in Kenya allocate 30pc of shareholding to local investors.
US Secretary of State Anthony Blinken backs the review to spur investments by American firms in Kenya, boost the economy and create jobs.
“US companies are eager to invest in Kenya’s success. We’re committed to supporting U.S. investment in Kenya – particularly in key sectors like information and communications technologies, agriculture, and renewable energy – which will help Kenya achieve its goal of reaching upper-middle income status by 2030, while creating jobs and opportunity for people in both our countries,” said Blinken.
While the debate on genetically modified organism rages on, GMO discussions will also be part of the talks as the two countries seek to ensure there is genuine food security.
“To us when it comes to agriculture is also an economic issue, and that’s why we are talking about value addition in the conversation we’re talking about, getting our products here,” added Foreign and Diaspora Affairs Cabinet Secretary Alfred Mutua.
Blinken said US has remarkable technology that addresses the health and strength of soil, and the resilience of seeds.
“We also have remarkable technology when it comes to seeds to make sure that they are much more resilient to climate change, to droughts, to extreme conditions. And this is one of the things that we’re working on with Kenya, as well as building out the entire production infrastructure that’s also vital to making sure that there’s genuine food security,” added Blinken.
“Many of you may not know that there are only four countries in Africa that have a bilateral strategic dialogue relationship with the US and Kenya is one,” said US Ambassador to Kenya, Meg Witman.
Bilateral trade between the two countries has grown over the years to more than Ksh 143 billion (US$1.1B) making Kenya the 96th largest US trading partner according to the Office of US Trade Representative.
BSD has five pillars including Economic Prosperity, Trade, and Investment, Defense Cooperation, Democracy, Governance, and Civilian Security, Multilateral and Regional Issues and Health Cooperation.
