Issue No. 37
US pledges funding for vital centre in Kenya
December 2002/January 2003
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THE United States has pledged to fund a biotechnology centre in Kenya, Trade and Industry minister Mukhisa Kituyi said recently.
At the same time, the Kenyan minister announced that Kenya had won the bid to host the establishment of a regional textile training centre, funded by US-Africa and Aid Link corporation (UATALCO) and aimed at developing stronger and integrated light industries.
Included in this package is a credit component of $45million, Dr Kituyi made the disclosure when he returned home from a fortum of the African Growth and Opportunity Act (Agoa) held in Mauritius from Janaury 13 to 17.
It was the first forum held on the African soil with a record turnout of 1,000 private sector and 700 government representatives. Kenya sent a strong delegation of 31 drawn from the government and the private sectors.
The minister said that in view of US department of agriculture ‘s promise to finance a biotech centre, 12 research personnel from Kenya would visit the US in the near future as part of staff exchange programme.
The Agoa economic forum was meant to review the progress of each beneficiary towards improving its participation and also assess the implementation and results since the Agoa enactment. The activities of the forum included country product exhibitions by private sector and government departments, the private sector and government sessions, one-to-one meetings and country workshops.
During the forum, US President George W. Bush made key announcements signalling his support for the extension of Agoa benefits beyond 2008. Kenya and a number of delegations were pushing for the extension of this benefit 2015 with a view to building on the positive gains that the initiative had given so far.
While acknowledging the plight of sub-Saharan African countries, Bush promised increased technical assistance for businesses and institutional support.
For Kenya, support would be given to the Kenya Plant Health Inspectors Services (Kephis), among others, when its American counterpart Alphis would send their own cost experts  to undertake research on Kenya’s fresh produce and other varieties of fruits and vegetables to enable access to the US market.
Bush announced also the Millennium Challenge Account in support of the development of agriculture, education, health, enterprise and trade. The $5 billion increase in expenditure would be accessed through the eligibility criterion and be chaired by US Secretary of State Colin Powell.
Its funds will be available from 2006.
The Multifibre Agreement, which ends in 2005, thereby allowing all countries in the world to sell textiles and apparels in any market, will harm infant industries benefiting through Agoa. However, discussions on this issue will be followed up with the US chamber of commerce and industry with sub-Saharan African countries committed to taking the matter to the World Trade Organisation (WTO) to seek a waiver or through a special and differential treatment.
During the forum, Kenya held a workshop on “ trade and investment opportunities in Kenya” where Dr Kituyi said most prospective investors were interested in investing in sugar and textile plants.
Kenya exhibits included garments, tea, coffee, flowers, hand-made and hand-loomed products, commercial crafts and fresh produce.