PM May says Britain committed to free trade with Kenya after Brexit

Reuters  |  NAIROBI 

By George Obulutsa

May was speaking on the third stop of a trip to during which she has said she wants Britain to become the biggest investor on the continent out of the world's richest nations.

"As Britain prepares to leave the we are committed to a smooth transition that ensures continuity in our trading relationship with Kenya, ensuring retains its duty free quota free access to the UK market," May said.

The EU is currently Britain's biggest trading partner. Sceptics say closer ties and more trade with will do little to offset the economic impact of Brexit.

Total trade with Nigeria, South Africa, and Kenya, the three nations on her tour this week, amounted to just over 13 billion pounds in 2016, official British figures show, compared with 554 billion pounds of trade with the EU that year.

The has used her first official visit to the region of more than one billion people to stress that Britain's relationship with former colonies, including and other African nations, is increasingly focused on private investment, not on aid.

In Nigeria, Africa's biggest economy and most populous nation, May also promised closer commercial ties and promoted the longstanding presence of British companies in the country.

Analysts have said that as Britain confronts the full impact of Brexit, African states will enter discussions from a position of strength, given the many other options they have for trade and military partners, from and to the Gulf and

So far Britain's record in using aid money on private investment in is mixed. The government's private equity arm, the CDC group, invested $140 million in ARM Cement, a Kenyan firm, two years ago that was put in administration this month.

Britain is Kenya's largest trading partner and a major market for its exports of cut flowers. The rapidly expanding agriculture sector is Kenya's biggest foreign exchange earner and a big source of jobs.

Kenyan Uhuru Kenyatta, speaking alongside May at a conference, said he welcomed her assurance that Kenyan duty free exports would continue after Brexit and said Kenya will be pressing for an increase in exports.

British companies are also promoting trade opportunities outside the EU after Brexit.

"The EU is an important market, it's established and mature, but our great markets in the future will be in Asia, Africa, and South America," said Karen Betts, of the Scotch Whisky Association, who is travelling with May. She said the EU makes up 30 percent of Scotch whisky exports.

FIGHTING CORRUPTION, TERRORISM

Kenyatta said two agreements signed on Thursday -- one to enhance military cooperation, the other for Britain to return assets and proceeds of corruption to Kenya -- indicated the close ties between the two countries.

Kenyan troops are part of a 22,000-strong peacekeeping force fighting in neighbouring against militants. AU troops landed in more than a decade ago and Somali forces are supposed to eventually take over their duties.

May said she was glad to hear Kenyatta call for a transition from peacekeepers to stronger Somali security forces.

Kenyatta, who was re-elected for a second term after a bloody and prolonged elections season, said his government's fight against graft is important for national unity and his legacy.

Corruption drains billions of dollars from the state every year in Kenya, and complain it is hard to get things done without paying bribes.

May also announced Britain will set up a cyber centre in to help authorities fight by tracking the sharing of abusive images on the internet.

"Already, British terrorists and child abusers are in UK jails because of our cooperation," she said.

was the last British to visit Kenya, in 1988.

(Additional reporting by and in London and Cecilie Kallestrup in Nairobi; Additional reporting and writing by Maggie Fick; Editing by Angus MacSwa)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, August 30 2018. 18:22 IST