U.S. Private Sector and Government Delegation Signs Deals Totaling 10 Billion Kenyan Shillings at American Chamber of Commerce Big Four Summit

U.S. Private Sector and Government Delegation Signs
Deals Totaling 10 Billion Kenyan Shillings at
American Chamber of Commerce Big Four Summit

 

Nairobi, June 28 – In a visible expression of support for President Kenyatta’s Big Four initiative, the U.S. Under Secretary of Commerce for International Trade Gil Kaplan led a delegation of 60 U.S. business executives and senior government officials who participated in the American Chamber of Commerce’s Big Four Summit. 

 President Kenyatta presided over the Summit’s deal signing ceremony, which focused on multiple deals and agreements valued at nearly 10 billion shillings with the Kenyan private sector and government. 

 U.S. Ambassador to Kenya Robert F. Godec said, “There is huge potential for Kenyan and American companies to build on each other’s strengths and markets, and to create shared successes — in the Big Four and beyond.  Together, we will build greater prosperity for both Kenyans and Americans.”

 The U.S. delegation to Kenya included senior U.S. Government officials and executives from major American companies in the infrastructure, energy, construction, transportation, logistics, technology, healthcare, finance, banking, and chemicals sectors.  

Background

 AmCham Big Four Summit Private Sector Deal Signings

Organizations

Amount

Project

World Business Capital and Victoria Commercial Bank

$10,000,000

Mr. Sunil Pallan, Executive Vice President of WorldBusiness Capital, Inc. (WBC), announced today that WBC has closed a $10 million term loan to Victoria Commercial Bank Limited (VCB).  Dr. Yogesh Pattni, Chief Executive Officer, of VCB noted that the bank will use this long-term loan to support its small and medium enterprise (SME) lending in Kenya, retaining a sizeable portion for women-owned and women-managed enterprises, and “green” loans.  WBC is a U.S.-based regulated commercial finance company offering long-term loans to help SMEs compete in the global marketplace. While the WBC team has a proven track record of successfully-closed loans in the U.S. and emerging markets around the world, where its focus is on Latin America and the Caribbean, Eurasia, and Africa.  This is WBC’s first loan to a Kenyan commercial bank to support its SME lending.  VCB is a mid-sized commercial bank headquartered in Nairobi and incorporated in 1987 with a large proportion of SME-clients.  VCB qualified for the credit extension based on its stringent credit underwriting process and its strong asset base.   The U.S. Government’s Overseas Private Investment Corporation (OPIC), provided an investment guaranty of the WBC loan, which coincides OPIC’s 2X Women’s Initiative designed to mobilize capital in support of women in developing countries.

Rendeavour and Unity Homes

$40,000,000

Rendeavour will develop over 1,200 affordable homes at Tatu City.  With a shortfall of around 1.9 million units across greater Nairobi and approximately 70 percent of those being in the lower to middle income segment, Unity Homes and Tatu City are well placed to assist the government in reaching its goal of over 200,000 units per year to meet the shortfall as well as add significantly to local employment.  Tatu City, the U.S.-backed, mixed-income development in Kiambu County, is a Ksh 4.5billion project addressing the shortage of affordable homes in Kenya and providing opportunities for local employment in the area. Homeowners enjoy all the amenities of Tatu City, which has over 15,000 affordable and middle income homes currently under planning and construction.  Two schools are open at Tatu City, with a third starting in September.  A Special Economic Zone, Tatu City is also home to the largest logistics and industrial zone in Kenya, where over 30 global, regional, and local companies are creating thousands of jobs through new manufacturing centers.

Varian and Mediheal Hospitals

$20,000,000

Varian will equip five Mediheal Cancer Centers across the country with oncology treatment equipment and develop an education center of excellence to train and certify clinical personnel.  The deal also includes a comprehensive services and maintenance contract for all equipment and software.

Tesla and Mettle Ofgen

$500,000

Mettle Solar Ofgen Ltd. will commission what will be the largest solar + battery system in East Africa and the first Tesla battery bank in Kenya.  Mettle Solar Ofgen has contracted Tesla Energy to supply and commission the 1,260 kWh battery system at Amboseli Serena Safari Lodge in the Amboseli National Park.  This renewable facility will reduce the diesel consumption by 85 percent while also radically reducing carbon emissions and noise at the lodge and improve operational performance with the supply of continuous, reliable, and clean power.

Angelica Medical, Medtronic, and the Ministry of Health

$20,000,000

Angelica Medical, the Kenyan distributor for Bellco (a member of the Medtronic group of companies) signed an extension to a managed equipment services agreement (MES) with the Kenyan Ministry of Health to continue advancing dialysis-care in Kenya.  As part of the extension, Medtronic and Angelica Medical will be delivering an additional 5 dialysis centres to serve more patients across the country.  The extension builds on the successful MES agreement signed in 2015 where 49 dialysis centres were installed.  Since the signature of the agreement in 2015, more than 400 nurses received training on the provision of dialysis-care and more than 70,000 dialysis sessions have been performed across Kenya.

 

AmCham Big Four Summit U.S.-Kenya Government Agreements

Organizations

Amount

Project

Power Africa and The Government of Kenya

 

U.S. Ambassador to Kenya Robert F. Godec together with Permanent Secretary Joseph Njoroge signed the Power Africa-Government of Kenya Cooperation Framework (CF).  The Framework outlines areas of Power Africa focus in Kenya and is in alignment with the Power Africa 2.0 Strategy as well as the government of Kenya’s objectives of ensuring universal electrification by 2022.  Emphasis will be placed on providing support to the Kenya Electricity Transmission Company (KETRACO), Kenya Power, and the Energy Regulatory Commission.

U.S. Trade and Development Agency (USTDA) and Kenya Tea and Development Agency (KTDA)

$772,615

USTDA will provide a grant to KTDA for a solar power and battery storage feasibility study.  As one of the world’s largest exporters of black tea, Kenya experiences high energy costs, with unreliable power at many tea factories across the country.  USTDA’s grant supports a feasibility study on the power requirements of KTDA tea factories and the viability of solar power and storage systems at proposed factories across Kenya.  The project will provide KTDA Power with approximately 30 megawatts of reliable energy while also reducing operating costs at the tea factories.  The project, which could leverage up to $70.5 million in financing, builds off of previous USTDA support for KTDA, which led to the construction of three hydropower plants and another seven under development for KTDA’s tea factories.  U.S.-based K&M Advisors LLC will carry out the feasibility study.

USTDA has worked in Kenya since 1981 and has supported over 35 projects, which have led to over $100 million in partnerships between Kenya and the United States.  Over the past two years, USTDA has funded a dozen energy activities in Kenya, worth approximately $8 million.  To further deepen this relationship, USTDA is announcing the hiring of a Kenyan representative to be based at the U.S. Embassy in Nairobi.  The USTDA representative will support USTDA’s existing portfolio and will develop a pipeline of infrastructure projects in Kenya.

USTDA is also pleased to announce a reverse trade mission for Kenya and Rwanda in cybersecurity.  U.S. companies are among the world’s most advanced when it comes to Information and Communication Technology software and services to protect against cybercrime. This visit would bring fourteen public and private sector representatives from Kenya and Rwanda to the United States to meet with U.S. companies and see cutting-edge U.S. technologies, services, and best practices in cybersecurity solutions for financial institutions. Delegates will also learn about policies, regulations, and financing mechanisms that can support the implementation of additional cybersecurity controls in East Africa.

And finally, USTDA will be hosting a procurement orientation visit for Kenyan delegates under USTDA’s Global Procurement Initiative: Understanding Best Value (GPI).  The orientation visit will introduce delegates to the GPI Program and share best practices utilized by the U.S. government and governments around the world to foster greater transparency and fair and open competition in public procurement.