Somalia and Kenya have renewed their Khat business agreement, paving the way for enhanced trade between the neighbouring nations.
The announcement was made by Kenya’s Cabinet Secretary of Agriculture and Livestock, Mithika Linturi, who highlighted the substantial economic benefits that the new agreement brings.
According to Linturi, Kenya will resume exporting Khat to Somalia starting on May 8th. This renewed agreement not only strengthens economic ties between the two countries but also establishes a regulatory framework for the Khat business.
Linturi emphasized that Kenya is committed to safeguarding the interests of all stakeholders involved in the Khat trade.
In recent years, disputes have arisen in the Khat business between Somalia and Kenya, leading to a suspension of trade activities. This disruption has hurt various stakeholders, including farmers and exporters, affecting their livelihoods and income.
One of the key factors that contributed to the trade dispute was taxation. However, the latest agreement signifies a fresh start in bilateral trade, as discussions between the two nations have addressed this issue and other related concerns.
The agreement aims to formalize and implement the agreed-upon terms, fostering a more stable and prosperous trade relationship.
The renewal of the Khat business agreement holds great significance for both Somalia and Kenya. It not only promotes economic cooperation but also provides a platform for resolving disputes and ensuring the smooth flow of trade.
By re-establishing trade links, the agreement opens up opportunities for farmers and exporters to resume their activities, thereby positively impacting their daily lives and income.
The ongoing discussions and efforts to formalize the agreement demonstrate the commitment of both nations to strengthen their economic ties.
As the agreement takes effect, it is expected to contribute to the growth and development of the Khat industry and create a conducive environment for trade between Somalia and Kenya.
The renewed Khat business agreement marks a positive step forward in the relationship between Somalia and Kenya.
With a focus on cooperation and mutual benefit, the agreement sets the stage for increased economic collaboration and the nurturing of a more robust trade partnership in the years to come.
