Kenya is set to reap big from negotiations it has started with South Korea on free movement of goods to the Asian country.
This emerged Thursday during a bilateral meeting between Trade Cabinet Secretary Moses Kuria and his South Korean Trade minister Dukgeun Ahn.
“Kenya and South Korea have agreed on a roadmap that will lead to a free trade agreement between the two countries,” a statement from the ministry reads.
The two agreed to enter into Free Trade Agreement negotiations in a deal that will see challenges hindering smooth flow of Kenyan products as coffee, tea, avocados and avocado products, cut flowers, nuts and fresh vegetables are addressed.
A Trade and Investment Promotion Framework, it states, will, however, be signed by January 31 next year as the negotiations progress between the two countries.
The Trade and Investment Promotion Framework is expected to address the trade imbalance that hugely favours South Korea whose exports’ worth to Kenya stands at Sh60 billion compared to Kenya’s exports to Korea at Sh3 billion.
The two ministers agreed to work together to establish a framework of cooperation between the Kenya Exports Promotion and Branding Agency (Keproba) and the Korean Trade Agency (Kotra).
The deal will involve technical support, opening of a Kenya International Trade Agency (Kita) office in Seoul and establishment of Kenyan warehouses for selling products in Seoul and Busan, Korea.
During the meeting, Kenya and South Korea agreed on joint investments in the Kenyan Special Economic Zones at the Konza Technopolis, Dongo Kundu, Naivasha, Sagana and the Nairobi International Financial Centre.
Kenya further invited Korean companies to participate in the International Investment Conference in Nairobi in the first quarter of next year.
The meeting between the two ministers was a follow up of the earlier summit between President William Ruto and South Korean President Yoon Suk-Yool, in Seoul on November 23.