The memorandum of understanding covers projects related to the Lamu Port South Sudan- Ethiopia Transport (Lapsset) corridor.

 

During the signing ceremony on Friday, Cabinet Secretary for Foreign Affairs and International Trade Amina Mohamed said the deal would include "the development of a transport corridor connecting a new port at Lamu, to Ethiopia and Southern Sudan".

 

The deal is likely to unsettle the Chinese, whose consortium led by the China Communications Construction Company (CCCC) won a Sh48.5 billion ($488.7 million) tender for the construction of the first three berths of Lamu Port.

 

President Uhuru Kenyatta in his address during the opening of the Global Entrepreneurship Summit (GES) said, Kenya cannot afford "the luxury" of aligning itself to either the East or West. The key projects of the Lapsset corridor programme require substantial amount of funds with a budget estimate of Sh2 trillion in construction costs.

 

The project includes construction of railway lines, a pipeline, roads and an airport to connect Kenya to South Sudan and Ethiopia.

 

Resort cities are also expected to come up in Isiolo, Lamu and Lokichogio to open up northern Kenya. The 200m-wide Lapsset corridor will link Lamu on Kenya's Coast to Juba, South Sudan, 1,700km away, and is expected to generate at least three per cent of Kenya's Gross Domestic Product.

 

The US and Kenya also signed agreements on a joint security initiative, industrial investments, tourism and student visas as well as cooperation in health, reducing the threats of biological warfare and diseases.

 

The duration for visa validity for students, temporary visitors for business and tourism has been increased to five years.

 

"Trade interaction between Kenya and the US has grown significantly though still in favour of the US. We expect this to narrow as Kenyans diversify their exports and travel favourably to the US to do business," Ms Amina Mohamed said.

 

Kenya hopes the renewed relations with America will help local businessmen take advantage of the renewed Africa Growth and Opportunity Act.

Source : ALL AFRICA