The recent disclosure by President William Ruto that the United Arab Emirates financed the private jet he used for a State visit to the United States has shone the spotlight on UAE’s increasing engagement with Kenya and the broader East African region.
This gesture to provide the private jet at a heavily discounted rate, which has triggered debate in Kenya, symbolises deeper strategic manoeuvring by the UAE to strengthen its foothold in Africa.
The move could be seen to serve multiple purposes; it is a gesture of goodwill, a demonstration of wealth and capability, and an implicit reminder of the UAE’s interest in maintaining a strong alliance with Kenya.
Such acts are part of a larger pattern of UAE’s involvement in Africa, marked by investments, aid, and diplomatic engagements.
The major question has been what the UAE will get from Kenya after offering the private jet which is run by a company chaired by a member of the royal family - His Highness Sheikh Mohammed Bin Hamad Bin Tahnoon Al Nahyan.
He also serves as the advisor of Special Affairs at the Ministry of Presidential Affairs which indicates that the offer for the jet could have been sanctioned from the highest office in the UAE.
Since getting into office, President Ruto has been seeking strong ties with the Gulf nation and met his UAE counterpart Sheikh Mohamed bin Zayed Al Nahyan in December last year on the sidelines of the COP28 summit.
The duo agreed to explore more partnerships and since then, several deals have been announced between the two countries.
However, UAE’s race into Kenya did not start with the current administration. Just before the 2022 General Elections, the Khalifa Fund for Enterprise Development (KFED), which is supported by the government of the Emirate of Abu Dhabi, declared its first $30 million (Sh3.9 billion) investment in Kenya.
This came just months after former President Uhuru Kenyatta pitched Kenya as Africa’s premier investment destination at the Kenya-Gulf Cooperation Council (GCC) States business forum in Dubai.
The UAE’s focus on Kenya and East Africa can be viewed within the broader geopolitical landscape as the region holds significant strategic value due to its proximity to vital maritime routes and its potential as a gateway to the larger African market.
The UAE’s involvement can also be seen as a counterbalance to the influence of other global powers, such as China, which has been heavily investing in African infrastructure and development.
Recent engagements with UAE officials could point to the interest that the Gulf country has in Kenya and what it is seeking to gain, especially in mining and technology.
In April, Dr Ruto met UAE’s Minister for Investment Mohamed Alsuwaidi at State House to discuss a financing and investment framework through which the two countries would explore programmes and investment opportunities worth $500 million (Sh65 billion).
During the same period, the two countries signed an agreement to boost investment in the mining and technology sectors, as the Gulf country focused on Africa to enhance its precious metals and minerals reserves.
Memorandum of understanding
As part of the agreement, the UAE Ministry of Investment and Kenya’s National Treasury will work together on mineral exploration, processing, marketing and mine development.
In March, Dr Ruto witnessed the signing of a memorandum of understanding between Kenya and the UAE that will see the development in the country of the first-ever data centre powered by geothermal energy. The agreement between Kenya’s EcoCloud and UAE’s G42 is to see the construction of a 1GW mega data centre.
During the US trip, G42 and Microsoft announced a package of digital investments in Kenya with an initial investment of $1 billion (Sh130 billion).
“This partnership is bigger than technology itself. It is about coming together of three countries with a common vision of a nation empowered by technology, where every citizen has the opportunity to thrive in the global digital landscape. It’s about building a future where Kenya flourishes as a digital leader,” Dr Ruto said.
The UAE has steadily been increasing its investments in Kenya and East Africa, driven by strategic economic interests. In February, Kenya and the UAE concluded a comprehensive economic partnership agreement.
Kenya was one of the first African countries with which the UAE launched bilateral trade deal talks in 2022 as part of a strategy to diversify its oil-based economy. Non-oil trade between the Gulf state and Kenya reached $3.1 billion (Sh403 billion) in 2023, up 26.4 per cent on 2022.
The agreement aims to eliminate or reduce tariffs and other trade barriers on a wide range of goods and services traded between Kenya and UAE. This is expected to make it cheaper and easier for businesses in both countries to import and export.
The agreement is expected to encourage more investment from UAE into Kenya in infrastructure, information technology, healthcare, logistics, and agriculture.
The agreement also seeks to ensure that Kenyan businesses benefit from increased access to the UAE market, a major trade and logistics hub in the Middle East opening doors for Kenyan exports to reach new customers.
Kenya’s main exports to the UAE are agricultural products and processed foods. Based on recent data (2022) Kenya, being a major tea producer, exported nearly $98 million (Sh12.7 billion) worth of tea to the UAE, which is a significant importer of the product.
Additionally, the UAE imported $35.5 million (Sh4.6 billion) worth of these fruits, $29 million (Sh3.7 billion) worth of ornamental plants and flowers, sheep and goat meat valued at $48.4 million (Sh6.3 billion) from Kenya in 2022.
The UAE’s major export to Kenya is petroleum products which was $2.96 billion (Sh384 billion) in 2022. Other UAE exports, based on 2022 numbers, to Kenya include; Iron and Steel ($72.02 million), Copper ($68.27 million), Beverages and Spirits ($44.32 million) and Salt, Sulphur, Cement ($36.49 million).
It is however worth noting that the UAE acts as a trade intermediary, re-exporting goods from other countries to Kenya.
With its expertise in the energy sector, the UAE has been exploring opportunities in East Africa’s emerging oil and gas industry. Additionally, the UAE’s investments in renewable energy projects align with Kenya’s ambitions to expand its green energy portfolio.
In 2021, the UAE’s Masdar and Kenya’s Rural Electrification and Renewable Energy Corporation signed a $500 million (Sh65bn) agreement to develop solar energy projects in Kenya.
