Raila says quick solution on Ukraine crisis to shield Kenyan exporters

Azimio la Umoja presidential hopeful, Raila Odinga has called on world leaders and the United Nations to find a speedy solution to the Russia-Ukraine conflict which could jeopardize Kenya’s billions worth of exports.

While giving his address at Chatham House in the United Kingdom on Wednesday, the former prime mister said the conflict could have a prolonged effect on Kenya and impair Kenya’s trade with the two antagonists.

According to Odinga, Kenyan exporters are likely to lose a big share of the Kshs. 10 billion worth of exports to Russia which consists of among other, coffee, tea, cut flowers, edible fruits, and nuts.

“The United Nations needs to take urgent leadership in finding a solution through diplomacy and dialogue already initiated at the UN Security Council and Kenya has already taken a very firm stand on this issue. In Kenya, we stand to lose about Kshs. 10 billion to Russia as a result of sanctions,” said Raila.

The prolonged conflict is also expected to have a domino effect on Kenya’s local agriculture sector and dent Kenya’s quest to become food secure

In 2020, Kenya’s exports to Russia saw a significant jump as the country exported goods worth Kshs. 8 billion compared to Kshs. 6.3 billion a year earlier while imports from the eastern European country also surged.

“In 2020, we imported wheat, maize and fertilizer worth about $406 million from Russia. This might equally be affected by sanctions and the disruptions and war at a time our economy can hardly afford such stress,” he stated.

Kenya also reported a rise in steel and iron imports from the Russian Federation.

To cushion farmers against shocks triggered by COVID-19 and the Ukrainian crisis, Odinga said should he be elected, he will ensure farmers are equipped with proper inputs and subsidies that will guarantee food surplus enough for exports.

The ODM leader further pledged to prioritize industrialization that is export-oriented to allow the private sector to venture into industrial manufacturing by utilizing local raw materials.

As the National Government and counties tussle over shareable allocations, Raila said his administration will ensure counties receive at least 35% of allocation in order to improve their local economies.

However, as the country chokes on public debt currently pegged at Kshs. 8.2 trillion that has seen a sharp rise in the cost of living as a result of austerity measures, Odinga pledged to scrutinize the debt stock as he seeks renegotiation with creditors.

“We will have to seek the indulgence and corporation of our development partners to renegotiate our debt. I will also audit our debt to establish its actual size. We acknowledge that even our troubles are in the part caused by corruption, kleptocracy and state capture. We will mount a serious war on corruption,” said Odinga.

He further pledged to borrow at affordable rates, negotiate better repayment terms and invest in enterprises with better returns.