Kenya, India sign trade deal to revive Rivatex, boost economy
Visiting India’s Prime Minister Narendra Modi opn Monday extended a 4.5 billion shillings credit line to Kenya via India’s Export Import Bank (Exim Bank) to revive The Rift Valley Textile Industry (Rivatex).
Out of the 4.5B, Exim Bank will release 1.5 billion shillings to go to the Industrial Development Bank for lending to small and medium enterprises.
Speaking after bilateral talks and after signing of agreements at State House, Nairobi President Uhuru Kenyatta indicated that the financing deal is an indication of the strong ties between the two countries with expectations that the two countries can collaborate in other areas.
PM Modi also pledged to fund the construction and equipping of a cancer hospital in Kenya as well as the equipping of the Kenyatta National Hospital.
President Kenyatta expressed the desire for Kenya to have a pharmaceutical drug manufacturing capacity locally, with the support of India.
“Such an effort would help us produce life-saving drugs needed by so many of our citizens, including ARVs,” said Kenyatta.
The two leaders signed seven agreements on Defence Cooperation, Cooperation in the field of National Housing Policy Development and Management, agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes, MoU between Bureau of Indian Standards and Kenya Bureau of Standards, Agreement on Exemption of Visa for holders of Diplomatic Passports, Line of Credit Agreement for US$ 15 million to IDB Capital Limited, for development of small and medium enterprises [SMEs] and the Line of Credit Agreement for US$ 29.95 million to the Government of Kenya for upgrade of Rift Valley Textiles Factory [RIVATEX)
Kenya and India are now set to tighten trade bilateral relations following the meeting by India’s Prime Minister Narendra Modi and President Uhuru Kenyatta.
Modi who later gave a lecture at University of Nairobi intimated that his visit was aimed at enhancing ties with the continent particularly in the economic sphere.
The PM leaves the country Monday night.
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