Kenya will, from next year, start exporting 700,000 head of cattle to Indonesia annually in a new trade deal set to offer livestock farmers access to the global market.
The deal, signed on Wednesday between Kenya and the South Asian nation, will see the two countries hasten approval protocols to enable the first shipment of 20,000 herds by August 2023 to Indonesia.
The deal is, however, expected to pile pressure on the Kenya Meat Commission, which has been struggling to source quality livestock to support its expansion drive and growing demand.
The agreement will also help balance the trade between the two nations, which has been in favour of Indonesia.
Imports from Indonesia dropped by 38 percent to Sh27.1 billion in 2022 from Sh44.4 billion in 2021, data from the Economic Survey Report shows.
On the other hand, export to Indonesia increased by 20 percent to Sh1.1 billion in 2022 from Sh912 million in 2021.
“We discussed the opportunity for Kenya to access the 700,000 cattle per year import market to Indonesia.
We agreed to hasten approval protocols that will enable the first shipment of 20,000 herds by August 2023,” Trade Cabinet secretary Moses Kuria told the Business Daily on Wednesday.
The Cabinet secretary, who is on a three-day benchmarking trip to Indonesia, also met his Trade counterpart Luhut Binsar Pandjaitan.
The two leaders engaged about post-Covid-19 export growth, the importance of providing fiscal and non-fiscal incentives to promote investment and industrialisation, particularly through export processing zones and business-to-business engagement in fostering stronger trade ties.
The ministers also discussed a possible Preferential Trade Agreement (PTA) between Kenya and Indonesia.
The PTA aims to enhance market access, reduce tariffs and facilitate trade between the two nations.
“Both ministers expressed their commitment to exploring the possibility of a Preferential Trade Agreement (PTA) between Kenya and Indonesia,” said Mr Kuria.
Indonesia's exports to the East Africa region include palm oil, tyres, paper products, and pharmaceuticals while it imports coffee and cocoa.
