• Fri. Oct 30th, 2020

SMEs TO BENEFIT GREATLY

ByBeatrice Muthoni

Aug 3, 2020

According to the Free Trade Agreement that is currently being negotiated between the government of Kenya and United States it states that Small and Medium Enterprises (SMEs) will be the biggest beneficiaries.

Maxwell Okello, American Chamber of Commerce in Kenya (AMCHAM) CEO says SMEs will benefit from trade opportunities that have increased both in export and import. He added that SMEs will have the platform to become distributors of American goods which are well-known of high quality, Foreign Direct Investment and partnership opportunities with corresponding person SMEs as well as larger U.S. companies.

SMEs are said to gain more in the form of transfer of knowledge, expertise and technology from American businesses. It will also boost quality and competitiveness of their goods and services.

Experts have however warned Kenya to be careful with the deal.

East Africa Business Council Chair Nick Nesbitt has previously urged the government to be aware that the deal is negotiating with a superpower whose interests it will be seeking to guard.

Under the deal, Kenya’s exports will retain duty and quota free access to the US market, cementing the gains achieved during the African Growth and Opportunities Act (AGOA) that enabled Kenya to diversify and increase the value of exports to the US market.

The negotiations come ahead of the anticipated lapse of the African Growth and Opportunities Act, popularly known as AGOA, on September 30, 2025.

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