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Kenya Economic NewsMacro Economic News

At Least 30,000 Kenyans Working in United Arab Emirates: CS Mudavadi Highlights Growing Bilateral Ties

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Prime Cabinet Secretary Musalia Mudavadi recently emphasized the significant role played by the Kenyan diaspora in the United Arab Emirates (UAE), with over 30,000 Kenyans currently living and working there. Speaking during the 53rd National Day celebrations of the UAE held in Nairobi, Mudavadi highlighted the deepening partnership between Kenya and the UAE, noting its potential to foster economic growth, trade, and social progress.

Expanding Diaspora Contribution and Bilateral Relations

Mudavadi attributed the increasing Kenyan diaspora population in the UAE to a Memorandum of Understanding signed in 2018, which has strengthened labor mobility agreements between the two countries. He remarked, “These Kenyans make a significant contribution to our country’s development through diaspora remittances and knowledge transfer, while also bridging the demand for labor in the UAE and Middle East.”

The Prime Cabinet Secretary underscored that Kenya is committed to further enhancing its partnership with the UAE, which ranks sixth among Kenya’s trading partners. Trade between the two nations has seen significant growth, increasing from KES 142.5 billion in 2013 to KES 460 billion in 2023. Kenyan exports to the UAE include tea, flowers, fruits, and meat products, while imports consist primarily of petroleum products, polymers, and telecommunications equipment.

Strategic Economic Initiatives

Mudavadi praised ongoing negotiations for the Kenya–UAE Comprehensive Economic Partnership Agreement (UAEK-CEPA), which aims to boost trade, investment, and economic activities in priority sectors. “When finalized, this agreement will anchor our economic priorities, especially under the Government’s Bottom-Up Economic Transformation Agenda,” he noted.

Kenya’s strategic position as a gateway to the East African region, coupled with its membership in economic blocs such as the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA), offers extensive market access to over 1.4 billion people. Mudavadi emphasized that these frameworks position Kenya as a trade hub, enhancing its potential to attract investments and foster export growth.

Collaborating on Green Investments and Climate Action

The UAE has been at the forefront of global efforts in renewable energy and sustainability, and Kenya is leveraging this expertise to address pressing climate challenges. Mudavadi lauded the UAE’s leadership, including hosting the International Renewable Energy Agency (IRENA) in Abu Dhabi and collaborating with Kenya during the launch of the Accelerated Partnership for Renewables in Africa (APRA) at the Africa Climate Summit.

Kenya and the UAE’s shared vision for sustainability was further demonstrated during a recent investor roadshow in the UAE, which included discussions with the Abu Dhabi Fund for Development. These engagements aim to attract green investments and foster economic development aligned with sustainable practices.

Trade Missions and Private Sector Collaboration

Private sector initiatives continue to play a pivotal role in advancing Kenya-UAE relations. Mudavadi highlighted a recent trade mission organized by the Sharjah Chamber of Commerce and Industry as evidence of growing business interests in exploring new opportunities. “Such engagements are instrumental in identifying innovative areas for collaboration to foster mutual growth and prosperity,” he said.

Kenya’s Diplomatic Relations with UAE: A Historical Perspective

Kenya and the UAE established diplomatic relations in June 1982, and their partnership has flourished over the decades. Mudavadi noted that the relationship is characterized by vibrant political, economic, and social ties, underpinned by numerous agreements and cooperation frameworks.

Addressing Challenges in Labor Migration

While the Kenyan diaspora in the UAE contributes significantly to both nations’ economies, challenges persist in ensuring the welfare of Kenyan workers. Reports of mistreatment and exploitation have been a concern in the past, prompting the Kenyan government to prioritize agreements that safeguard workers’ rights. Mudavadi reiterated Kenya’s commitment to addressing these challenges by strengthening labor agreements and enhancing worker protection mechanisms.

Future Outlook

Looking ahead, Kenya and the UAE are poised to deepen their ties further through enhanced trade, investment, and cultural exchanges. The ongoing negotiations for the UAEK-CEPA and renewed focus on green investments indicate a promising trajectory for the bilateral relationship. As Mudavadi aptly summarized, “Together, we will continue to build a future defined by shared goals and deeper cooperation for the prosperity of our people.”

The celebration of the UAE’s National Day in Nairobi served as a testament to the enduring friendship and partnership between the two nations, reflecting their shared commitment to mutual growth and development.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

3rd December, 2024

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