The Kenyan government on Thursday called on India to import more Kenyan goods to offset a widening bilateral trade imbalance that favors the Asian country.
Kenyan Prime Minister Raila Odinga lauded the relations between Kenya and India, which dates back to the 19th century, and expressed hope that India will reciprocate Kenya's priority to the country in economic and cultural exchanges.
Odinga said that India is Kenya's sixth largest trading partner which underscores close economic and cultural contacts between the two countries, helping in large part by a large immigrant Indian population in Kenya. But the trade is hugely in favour of India, thus constraining Kenya's capacity to benefit fully from the expanding cooperation.
He asked India to increase its uptake of Kenya's farm and processed products in demand in the Asian country.
"The trade imbalance could easily be reduced if India increases its current importation of Sisal, coffee precious stones, wool, soda ash, pyrethrum, wet leather, wattle and horticultural products," the PM said.
Odinga told a luncheon of Indian leaders, led by visiting Chief Minister of the State of Gujarat, Narendra Modi, and local businessmen that an agreement of a Joint Commission signed in 1999could be exploited further to benefit Kenya.
The joint commission coordinates political, trade, economic, technical and cultural cooperation between the two nations.
Since the agreement's signing, India's official development assistance to Kenya has increased, topping 6.6 million U.S. dollars as of 2008.
Kenya will be seeking a further 6.5 million dollars in concessional loans from a special fund set by the Indian government early in the year for African countries.
At the India-Africa Forum held in April, India announced the establishment of the 5.4 billion U.S. dollars fund as a package to African sovereign borrowers.
Kenya is seeking the loan in order to finance development of the national power transmission lines.
Odinga also appealed for increased cooperation with the state of Gujarat, whose technological and economic development is higher than India's average.
"We believe the cooperation with the state of Gujarat in various fields will play an important part in attainment of the vision 2030 goals," he said.
He said Kenya is exploring modalities to formulate exchange programs with the state's pharmaceutical, textile, ceramic and information technology sectors.
"The achievement realized in Gujarat could also be duplicated here," he said, and called upon business people from the state to invest in Kenya to help steer economic growth in both countries.
Earlier, Modi said Kenya is set to achieve tremendous development following Barack Obama's election as next U.S. president. The Gujarat State chief minister said though Obama whose father was Kenyan won the top seat thousands of kilometres away "the real effect will come to Kenya."
"Each and every Kenyan feels Obama belongs to them. This simple feeling can generate tremendous energy to the Kenya society to work even harder, boost conference services and the country's political image," Modi said in Nairobi.
"The feeling of being Kenyan now has a high value and can change the country," Modi said as he congratulated Kenya and Obama for his win.
He said being an outsider and student of political science, the political events in the United States was one of the best times for Kenya and that the country should capitalize on it for development.
Modi hailed Kenya's relationship with India dating centuries and called for more cooperation on investments. "We want to create a bridge that will strengthen our relationship," Modi said, citing small scale industries, infrastructure development, energy, information and communications technology, minerals among others as areas where Kenya and India can work together.
Source:Xinhua
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