Wednesday, April 18, 2007
The two governments have agreed that Kenya would provide an initial amount of $5 million for the construction of the Garissa-Wajir road while the balance will be provided by the Saudi government. Following the agreement in Riyadh recently, President Mwai Kibaki noted that the projects were of great significance to Kenya and added that the establishment of a fully fledged University in Mombasa was long overdue. Other projects to be funded by the Saudi government include Ongata Rongai water and sanitation, rehabilitation of schools with an emphasis on establishment of a model school in each province, rehabilitation of Wajir district hospital and construction and rehabilitation of the burns unit and the pediatric emergency unit at the Kenyatta National Hospital. Saudi Arabia will also convene a meeting of key development partners in the Middle East including those drawn from the Saudi Fund, the Kuwait Fund and the Arab Bank for Economic Development in Africa to seek ways of establishing a strong consortium for funding projects in Kenya. President Kibaki also held talks with the Governor of Riyadh Salman Bin Adulaziz at the governor's palace. Prince Salman said he would spearhead a campaign to promote investment by Saudi businessmen in Kenya. He welcomed Kenya's role in brokering peace in Somalia and in Sudan and for spearheading international efforts for reconstruction of the two countries. President Kibaki said peace in the two nations was crucial for the stability of the region. Addressing businessmen at the Riyadh Chambers of Commerce and Industry (RCCI) Kibaki said that by investing in Kenya they can market their products to the larger market in Africa and elsewhere in the world. "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 per cent 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. Source: Khaleej Times, April 18, 2007