India-Kenya Bilateral Relationship

What’s in Today’s Article?

• Why in the News?
• India-Kenya Bilateral Relationship
• News Summary

Why in the News?

• India has extended a $250 million Line of Credit for modernisation of agriculture in Kenya.

India-Kenya Bilateral Relationship

• India established the office of Commissioner for British East Africa resident in Nairobi in 1948.
• Following Kenyan independence in December 1963, a High Commission was established in Nairobi, capital of Kenya.
• India has had an Assistant High Commission in Mombasa, coastal city in southeastern Kenya.
• Vice President Dr. S Radhakrishnan visited Kenya in July 1956.
• The State visit of PM Narendra Modi to Kenya in 2016 gave a new impetus to bilateral partnership.
• Bilateral Trade:
  • An India-Kenya Trade Agreement was signed in 1981, under which both countries accorded Most Favored Nation status to each other.
  • As a follow-up to the Agreement, the India-Kenya Joint Trade Committee (JTC) was set up at Ministerial level in 1983.
  • A bilateral Double Taxation Avoidance Agreement (DTAA) was signed in 1989.
  • Revised DTAA was signed in July 2016 and came into force in 2017.
• Exports:
  • In 2021, India exported $2.55B to Kenya.
  • The main products that India exported to Kenya are Refined Petroleum ($504M), Packaged Medicaments ($253M), and Semi-Finished Iron ($149M).
  • During the last 26 years the exports of India to Kenya have increased at an annualized rate of 9.46%, from $243M in 1995 to $2.55B in 2021.
• Imports:
  • In 2021, Kenya exported $107M to India.
  • The main products that Kenya exported to India were Dried Legumes ($42.8M), Carbonates ($20.5M), and Tea ($11.7M).
• Development Cooperation:
  • India offers development assistance to Kenya in the form of loans and credit.
  • This includes a loan of Rs. 50 million to Government of Kenya in 1982 and Lines of Credit by EXIM Bank to Industrial Development Bank Capital Ltd.
• Social Ties:
  • About 80,000 to 100,000 people in Kenya are of Indian origin.
  • This makes Kenya the African country with the largest Indian community after South Africa.
  • The Kenyan government in 2017, recognized the Indian descent as the 44th tribe in the country.
  • India is the third largest source (other than neighbours) of inbound tourists to Kenya.
  • There are about 3,500 Kenyan students currently studying in 50 Institutions throughout India.

News Summary

• Kenyan President William Samoei Ruto is on a three-day state visit to India.
• India and Kenya looked to boost defence, maritime and connectivity ties as Prime Minister Narendra Modi held talks with visiting President William Ruto.
• PM Modi announced a new $250 million line of credit to help the east African country improve its agriculture sector.
• The two countries also signed five agreements and issued a vision document for maritime cooperation in the Indian Ocean.
• Looking to intensify defence cooperation, the leaders agreed to continue working towards expanding training exchanges, including deputation of Indian experts, in Kenyan defence institutions.
• PM Modi said both sides will carry out joint military exercises and will collaborate on counter-terror projects.

Q1) What is the meaning of Diplomacy?

Diplomacy is the art and science of maintaining peaceful relationships between nations, groups, or individuals.

Q2) What is the Horn of Africa?

The Horn of Africa, also known as the Somali Peninsula, is a large peninsula and geopolitical region in East Africa. Located on the easternmost part of the African mainland, it is the fourth largest peninsula in the world.

Source: India provides $250 million Line of Credit to Kenya for agricultural modernisation | TOI