KEPSA members, led by the Vice-Chair Mr Jas Bedi, participated and attended a business forum in Seoul, Korea to explore opportunities for trade and investment on the margins of the official visit to the Republic of Korea by H.E. President William Ruto from 21st to 24^th November 2022.

The business forum, which was held on the 23^rd November 2022 at the Chrystal Roomlotte Hotel in Seoul, was themed 'Unlocking trade and investment opportunities between Kenya and South Korea'. The forum was graced and attended by H.E President William Ruto who was on a three-day State visit on the invitation by the South Korean Head of State President Yoon Suk Yeol to strengthen ties between the two nations.

Also key in attendance were Mr Richard Ngatia -President / Kenya National Chamber of Commerce and Industry, Amb. Lyeo Woon-Ki, President: Korea-Africa Foundation, Ms Olivia Rachier, MD, KENINVEST, Hon. Mithika Linturi, Cabinet Secretary for Agriculture & Livestock, Hon. Eliud Owalo, Cabinet Secretary ICT & Digital Economy, Hon. Kipchumba Murkomen, Cabinet Secretary for Roads & Transport, Hon. Susan N. Wafula, Cabinet Secretary for Health and Hon. Moses Kuria, Hsc, Cabinet Secretary, Ministry of Trade, Investment & Industry

Mr Bedi who made remarks during the business forum highlighted that with regards to the Kenya – Korea Bilateral Trade Relations, Kenya's exports to South Korea grew at an average annual increment rate of 16% yearly over the last five years from USD 22.8 million in 2017 to USD 35.7 million in 2021. Imports grew at a faster rate of 45% annually on average from USD 170.2 million in 2017 to USD 494.5 million in 2021. Between 2017 and 2021, Kenya's exports to Korea averaged at USD 26.3 million while its imports from Korea averaged at USD 237.1 million. Kenya's imports were more than her exports by approximately USD 210.8 million on average. The balance of trade between the two countries was in favour of Korea throughout the period. The trade deficit gap widened in 2021 (USD 458.8 million) compared to 2020 (USD 169.9 million).

Kenya's imports from South Korea were valued at USD 494.5 million in 2021 and have been increasing on average at 45% per year between 2017 and 2021. The value of Kenya's exports to South Korea stood at USD 35.7 million in 2021 and has been growing on an average of 16% per year between 2017 and 2021. Kenya's key export products to South Korea included coffee, titanium ores & concentrates, waste and scrap of copper, live plants and waste and scrap of aluminium. The lead export product (coffee) constituted more than 62% of Kenya's total exports to South Korea indicating slight value addition and very little diversification of the export basket. The trend though not worrying signals that Kenya's exports to Korea are vulnerable and prone to shock. Any negative effect on tea exports to the country could almost cripple our exports to the Asian nation.

Kenya and South Korea agreed on a roadmap to a free trade agreement between the two countries. In bilateral talks between South Korean Trade minister Dukgeun Ahn and his Kenyan counterpart Moses Kuria, the two parties agreed to enter into negotiations on this with immediate effect.

Even as negotiations continue, the two ministers agreed to conclude a Trade and Investment Promotion Framework that will be signed by January 31 next year. The deal will address the challenges that hinder the smooth flow of trade, especially on Kenyan products such as coffee, tea, avocados and avocado products, cut flowers, nuts and fresh vegetables.

The two ministers agreed to work together to establish a framework of cooperation between the Kenya Exports Promotion and Branding Agency (KEPROBA) and the Korean Trade Agency (Kotra) that will involve technical support, the opening of a Kenya International Trade Agency office in Seoul and the establishment of Kenyan warehouses in Seoul and Busan to sell local goods.