Reported by
Faridah N Kulumba
The President of Kenya Uhuru Kenyatta last week received Saudi Arabia’s Foreign Minister Faisal bin Farhan Al Saud in Nairobi where they held talks.
President Uhuru and Prince Faisal vowed to expand bilateral relations and also discussed the strong bilateral ties between Saudi Arabia and Kenya, noting that the two countries were keen on deepening their relations going forward.
Uhuru praised the Saudi Arabia’s Kingdom’s role in supporting regional and international efforts to establish the foundations of security, stability and conflict resolution in the African continent.
Kenya-Saudi Arabia ties
The relations between Kenya and Saudi Arabia are cordial, and the two nations continue to enjoy long standing warm and friendly relations spanning several decades since 1963. Saudi Arabia is keen to ensure that the two countries diplomatic relations are not soiled by issues which can be solved through dialogue.
The economic and political cooperation between Saudi Arabia and Kenyan
Economically Kenya is keen on boosting tea sales and increasing Saudi Arabians tourists to Kenya. The Kingdom is endowed with natural resources including a wide range of industrial raw materials and minerals such as bauxite, limestone, gypsum, and phosphate and iron ore. There are no restrictions on foreign exchange and repatriation of capital and profits and this has made it possible for Kenyan companies operating in Saudi Arabia to repatriate profits back home.
In 2014, Kenyan imports from Saudi Arabia stood at KES 28.22 billion (EUR. 256 million). And in 2013, Kenyan imports from Saudi stood at KES. 64 billion (EUR. 603 million). The total trade between the two countries stood at KES. 68 billion (EUR. 636 million), which made Saudi Arabia the 9th largest trading partner of Kenya.
Saudi Arabia has funded multiple development projects in Kenya, including Nairobi Water supply SR 55,84 million, Kenya-South Sudan Road SR 34.59 million. THika -Garissa-Liboi Road SR 55.84 million, Kiambere Hydroelectric Power, Agriculture Sector Support SR 15 million among other projects.
Saudi Arabia offers ample employment to Kenyans. Job opportunities exist in industries, hospitals, education, research, agriculture including the dairy industry, shipping and commerce, telecommunication and IT industry.
Nadia Otieno Kenyan journalist told African-Press that Kenyan business persons have opened various income enterprises in Saudi Arabia, which has made it possible for more Kenyans to find employment opportunities in Saudi Arabia
Politically, the government of Saudi Arabia established political links in the colonial period with Kenya’s then British administration, and today it is one of several national bodies with a diplomatic presence in Nairobi.
Kenyan President Uhuru assured Saudi Arabia’s Foreign Minister of Kenya’s strong commitment to the expansion of the two countries’ partnership in trade. security, and investments to cover other areas of mutual interests, reported Xinhua Net.
“We need to look at different partnerships to be sure we do not lose out. We are grateful for the development support Saudi Arabia gives us. We need to strengthen our partnership in trade, business, and investment,” president Uhuru said.
President Uhuru proposed a joint business forum of Kenyan and Saudi Arabian investors to explore available investment opportunities, saying Kenya and Saudi Arabia can work together to secure their shared interests.
On the other hand the Saudi Arabian foreign minister also assured his government’s commitment to continue partnering with Kenya in achieving its development goals.
How important is Kenya for Saudi Arabia?
Saudi Arabia is a leading world producer and exporter of oil to Kenya with one fourth of the world oil reserves. Saudi Arabia has turned to Kenya as a fresh source of inexpensive labor. Currently about 40,000 Kenyans work in various sectors such as construction and other service-based jobs in Saudi Arabia.
A few years back the two countries signed a bilateral agreement on deistic labor recruitment in a bid to increase and open new avenues for recruiting well trained and skilled domestic workers in order to appease the growing demand of them.
Since becoming a member of the World Trade Organisation (WTO), Saudi Arabian business community has been keen to invest abroad. The largest Saudi investment in Kenya last year was the 17 million pounds sterling ($32 million) purchase of five hotels – the Norfolk, Mount Kenya Safari Club, Mara Safari Club, The Ark and Aberdare Country Club by Al-Walid bin Talal bin Abdul Aziz Al-Saud the 5th richest man in the world with assets worth $24 billion Saudi Arabia‟s foreign trade totals US $ 78 billion.
