Kenya-US Trade Agreement: How Donald Trump’s Victory Affects Ruto’s Government STIP Agreement with America

• Republican presidential candidate Donald Trump won the US election on November 5, becoming the country’s 47th president.
• Trump was the 45th president of the United States before losing to outgoing President Joe Biden in November 2020.
• Biden withdrew the Trump administration’s Free Trade Agreement signed with Kenya in 2020, introducing the Strategic Trade and Investment Partnership (STIP) in 2022.
• STIP advocated for greater involvement in workers’ benefits, among other agreements that Trump’s immigration policies do not support.

TUKO.co.ke journalist Wycliffe Musalia has more than five years of experience in financial, businessand technology reports, and offers deep insight into Kenyan and global economic trends.

Kenya’s trade talks with US could stall due to… Donald Trump’s victory as President Joe Biden’s successor.

The Republican presidential candidate won the US elections on November 5, becoming the 47th President of the United States of America (USA).

Trump was the 45th president of the United States before losing to Biden in November 2020.

Why Kenya’s STIP agreement with the US may be stalled

Biden revoked the Trump administration’s Free Trade Agreement signed with Kenya in 2020, and will introduce the Strategic Trade and Investment Partnership (STIP) in 2022.

STIP advocates for increased interaction and increasing investments that benefit workers, consumers and the business community.

Trump actively opposed immigrant worker policies, arguing that his victory would make America great and free.

Saboti MP Caleb Amis said on Wednesday, November 6, that Trump’s policy is not aimed at providing foreign aid, as stipulated in STIP.

“Trump hates foreign aid as a means of developing Africa. He will not meet Ruto to hand out free sanitary pads and mosquito nets,” Amizi said.

The lawmaker, who is a business professional, has warned that the Trump administration could end all US-funded programs in Kenya.

Trump could also delay the free trade agreement by calling for new negotiations that include the 2020 free trade agreement.

What the Kenyan government said about STIP under the Trump administration

However, the Kenyan administration remains adamant that the STIP agreement with America will continue despite the change in administration.

Treasury Cabinet Secretary (CS) John Mbadi described Kenya’s interaction with the United States based on multilateral trade agreements.

Mbadi said bilateral negotiations launched under the Biden administration were unlikely to change.

“America’s policy toward economic engagement in Africa and Kenya generally does not change much whether a Republican or a Democrat wins the presidency. She remains stable. I don’t expect much change based on Trump’s victory.

“Currently, our interaction with the US government is more at the multilateral level, where the US government supports the World Bank, and through this we receive support. Support is minimal when it comes to bilateral relations,” Mbadi told a local TV channel.

What you need to know about the Kenya-US STIP program

Kenya and the United States have agreed on a strategic cooperation framework to provide technical assistance and build trade capacity in Kenya.

STIP is focused on maximizing Kenya’s use of African Growth and Opportunity Act trade benefits for the remaining years of the preference program, which expires in 2025.

The framework was expected to contribute to the development and competitiveness of key agricultural value chains in Kenya.

How the Ruto government benefited from STIP with the US

In May 2024, President William Ruto went on a four-day state visit in the USA.

Ruto and his entourage are believed to have brought home multimillion-dollar investments and deals.

Head of State secured financial support for key projectsincluding the construction of the Nairobi-Mombasa Expressway and affordable housing programmes.

Others included deals such as Coca-Cola’s KSh23 billion investment, which will see a new drinks plant built at a cost of KSh175 million. Nairobi.

Proofreading: Mercy Nyambura Gutua, journalist and editor of TUKO.co.ke

Source: TUKO.co.ke