PRESIDENT KIBAKI WELCOMES SIGNING OF KEY AGREEMENTS

Date Posted: 7/6/2007




President Mwai Kibaki has welcomed the signing of key agreements that will pave the way for closer cooperation between Kenya and Libya.

In a statement issued at the end of his three-day official visit to Sirte Libya, President Kibaki expressed satisfaction that his visit culminated in the signing of the agreements on cooperation on trade and investments, higher education and bilateral air services.

"I am encouraged to inform Kenyans that my visit to Libya at the invitation of Brother Leader Muammar Gaddafi was very successful and has opened a new chapter of mutually beneficial relations between our two countries," President Kibaki said.

During the visit President Kibaki held lengthy talks with Libyan leader Muammar Gaddafi, where agreement was reached on the need to deepen relations between the two countries, through signing of the various agreements.


The Libyan leader hailed President Kibaki's foresight in providing leadership for Kenya; that was now the pillar of economic growth for other regional economies that were reliant on Kenya as the gateway to the East and Central Africa region.

President Kibaki pointed out that his visit to Libya was a follow up to a wide range of consultations that have been going on between Kenya and Libya aimed at enabling the two countries to tap the existing huge unexploited potential for mutually beneficial cooperation.

President Kibaki noted that in January this year his Government dispatched senior officials from the Ministry of Energy to discuss with their counterparts in Libya leading to the signing of a Memorandum of Understanding with Tamoil Africa Holdings Ltd, where it was agreed that Libya would provide Kenya with petroleum products at concessional rates.

Said President Kibaki: "This initiative was informed by the realization that our economy is growing rapidly and this has resulted in a huge increase in the demand for oil."

He added: "In view of the prohibitive cost of oil and its impact on the continued growth of our economy, my Government has been particularly keen on seeking a cheaper source of oil."

In this connection, President Kibaki said he was encouraged that during his consultations with Libyan Leader Gaddafi they agreed that the Memorandum of Understanding should be implemented expeditiously.

The President pointed out that the availability of petroleum products at concessional rates would not only sustain and inject additional impetus to the Kenyan economy but also have a direct positive impact on the lives of Kenyans.

He observed that Tamoil has also expressed interest in undertaking the upgrading of the Kenya Oil Refinery and construction of a Liquefied Petroleum Gas import storage and distribution facility in Mombasa, as Kenya prepares to invite tenders for this process.

Besides oil, President Kibaki expressed satisfaction that during his visit Kenya and Libya concluded a framework Agreement establishing a Joint Commission for Bilateral Cooperation between the two countries that will oversee a wide range of collaboration in various areas of common interest.

He said Kenya and Libya also signed a Trade Agreement in which the two countries undertook to grant each other most favored nation treatment in all matters relating to customs duties and all other charges and taxes applicable to the importation and exportation of goods.

To further strengthen trade relations between the two countries, President Kibaki said the two countries agreed to encourage and facilitate visits by business persons and trade delegations, actively facilitate each other's participation in trade fairs organized by either party and organize trade exhibitions by either party in the territory of the other.

The Head of State added that the two countries also reached agreement on Promotion, Guarantee and Protection of Investment under which Kenya and Libya shall provide investors of either party with treatment of more favoured country.

"Each contracting party shall create convenient conditions for investors of the other contracting party, to carry out investments in its territory legally. This agreement will promote foreign investments in the country and generate more employment for our people," he said.

The President pointed out that already Libyan investors have expressed interest of investing in Kenya, saying the Libyan African Arab Investment Company is now in the process of setting up a 5-6 Star hotel in Nairobi and a Conference Centre in Mombasa.

"We also expect investments in the real estate sector in our capital city Nairobi. We welcome other Libyan investors to invest in Kenya in the area of their choice,' the President said.

He expounded that the scope of the bilateral cooperation envisaged in the Agreement shall also include, but not limited to infrastructure development, including road construction, water, power and telecommunications.

The President added that the bilateral cooperation will also cover security, safety and law enforcement; health and nutrition; trade and investment; transport and communication, including air, road and marine transport networks among other important areas.

President Kibaki said under the Kenya/Libya Bilateral Air Services Agreement, the two countries granted each other various rights in regard to air transport.

"I am confident that this agreement will enable businessmen and tourists from the two countries to travel easily in a mutually beneficial two-way traffic," the Head of State said.

Under the Agreement on Co-operation in Higher Education, President Kibaki said both countries agreed to exchange experiences fields that contribute to the promotion of higher education areas such as informatics and computer technologies.

On international relations, President Kibaki said Kenya and Libya agreed to continue working together in the search for peace in troubled regions in the continent and to promote the agenda of the African Union.

"As Members of the African Union and other International Organizations, we agreed to continue working closely in advocating for matters of common concern such as the reform of the United Nations," he said.

Earlier, President Kibaki held lengthy discussions with Libyan Leader Muammar Gaddafi in Sirte on issues of mutual interest including the signing of the agreements.
During the meeting, the Libyan Leader said Kenya and Libya had opened a new chapter of cooperation that has never been witnessed before.

He said Libya and Kenya should combine their potential for the benefit of the people of the two countries and wished President Kibaki victory in the coming elections as that would enhance the growing cooperation between the two countries.

President Kibaki concluded his official visit to Libya with a meeting with Libyan Leader Gaddafi and Nicaraguan President Daniel Ortega.

During the meeting, the three leaders called for close cooperation among developing countries.
The President's delegation to Libya included Ministers Raphael Tuju, Dr. Mukhisa Kituyi and Kiraitu Murungi among others

Courtesy: PPS

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