Ruto inks deal to export agricultural produce to Israel from June

Tea, coffee, avocado and pineapple farmers have a reason to smile after President William Ruto struck a deal allowing them to export their produce to Israel from next month.

The good news comes after President Ruto concluded a two-day official visit to the Jewish state on Wednesday.

Speaking during the Israel Investor Roundtable Forum in Tel Aviv, President Ruto said: "Whatever products Kenya exports to Europe will also be exported to Israel from June 5."

"Kenya supplies the best tea and coffee in the world. Kenyan tea is used to blend teas from other countries to [add] flavour.

“Instead of buying blended tea or coffee, Kenya is ready to supply Israel with premium tea and coffee at the same price you buy second or even third class tea elsewhere," President Ruto told Israeli investors.

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Kenya's earnings from tea exports rose to Sh138 billion ($1.07 billion) last year from Sh136 billion in 2021, according to Tea Board of Kenya data.

Kenya's avocado exports are mainly to China, which reached Sh7 billion in the three months to October 2022, more than the earnings realised in the first seven months of the year, according to the Directorate of Horticulture.

The Israeli market is expected to double local farmers' incomes.

President Ruto and Israel Prime Minister Benjamin Netanyahu agreed to work together to remove trade barriers between their two countries.

Dr Ruto said the lack of direct flights between Kenya and Israel was a "serious obstacle" that continued to hamper trade and tourism. Talks to review the bilateral air services agreement, which will allow Kenya Airways and El-Al — Israel's national carrier — to increase their operations, are underway.

Dr Ruto, commenting on the balance of trade, where Kenya's exports to Israel are worth Sh1.1 billion annually compared to Sh7.5 billion imports, said "we are under-performing, but have potential to do much more."

Mr Netanyahu assured of his country's commitment to working with Kenya in the fight against terrorism, radicalisation and violent extremism.

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"We are focused on remaining stable and peaceful as we pursue our socio-economic friendship," he said. President Isaac Herzog said Israel's modern agricultural technology will sustain Kenya's "hugely transformative plan".

Kenya's new Global Investment Campaign aims to attract quality investment and the Kenya Kwanza administration is keen to offer excellent returns at relatively low risk to smallholder export farmers, Dr Ruto told investors.

President Ruto said his government is committed to making it easier for foreign investors to do business in the country in a bid to make Kenya one of the world's top business hubs.

"We have a legal system that provides robust protection of property rights and an equally strong rule of law mechanism," said Dr Ruto.

He assured foreign investors of a conducive business environment, saying, his government has enacted laws to protect investors and liberalised laws and regulations for foreign markets.

Dr Ruto announced that the country's tax system, which has been a major constraint in attracting foreign investment in the past, is "under constant review to align with the country's investment promotion plan".

He encouraged Israeli traders to invest in housing, renewable energy, health, water and irrigation and information and communication technology.

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