PRESIDENT KIBAKI SPEAKS TO THE AMCHAM

UNCLAS NAIROBI 004137 SIPDIS SENSITIVE DEPT FOR AF/E, AF/RSA DEPT ALSO PASS TO USTR FOR BILL JACKSON TREASURY FOR OREN WHYCHE-SHAW SIPDIS E.O. 12958: N/A TAGS: ECON ETRD EINV PREL KE SUBJECT: PRESIDENT KIBAKI SPEAKS TO THE AMCHAM ¶1. (SBU) Summary: In an unprecedented gesture, Kenyan President Mwai Kibaki addressed the American Chamber of Commerce in Kenya on September 19. Touching on familiar economic reform and market opening themes, Kibaki hit all the right notes in his speech. But the real importance lies in the gesture itself and the signal it sends of Kenya's desire for more engagement and stronger ties with the United States. End Summary. -------------- Kibaki Comes for Lunch and is Warmly Welcomed -------------- ¶2. (U) In an unprecedented gesture, Kenyan President Mwai Kibaki spoke on September 19 to the recently established American Chamber of Commerce in Kenya (ACCK). The gesture was a major coup for the ACCK and was apparently unsolicited. State House asked for the event after its public relations firm (an ACCK member) recently raised it as one option for ways to improve the President's image. The ACCK was caught off guard by the State House offer, but hastily and efficiently converted its Annual General Meeting scheduled for September 19 into a presidential speaking event open to all ACCK members. In the smoothly orchestrated luncheon, the Ambassador accompanied Kibaki into the ballroom and joined him on the dais. -------------- Hitting all the Right Notes -------------- ¶3. (SBU) In his prepared remarks, Kibaki said all the right things to the assembled audience of U.S. and U.S.-related businesspeople. He reiterated the Government of Kenya's (GOK) multi-pronged commitment to improved governance and service delivery, privatization, business friendly economic and civil service reforms, improved physical infrastructure, and greater regional economic integration as a means of expanding business opportunities for U.S. and other firms. Touching on an issue near and dear to ACCK members, he also pledged to improve relevant enforcement regimes to combat counterfeiting and the dumping of substandard manufactured goods in Kenya. In this regard, he said the GOK is currently preparing new anti-counterfeit legislation which will be introduced soon to Parliament. ¶4. (SBU) Kibaki also used the occasion to highlight Kenya as a good place to do business in light of its strong private sector, commitment to deeper reform, and natural advantages as a regional business hub. He hailed the importance of the U.S.-Kenya business relationship, and called on U.S. firms to invest more in the country. To applause, and departing from his prepared remarks, Kibaki made a sincere and much-appreciated appeal to the U.S. business community to "talk to us freely" at any time whenever concerns or problems arise about the business environment in Kenya. -------------- Comment -------------- ¶5. (SBU) The President's speech broke no new ground, and reiterated the GOK's oft-stated commitment to economic growth through free markets, competition, and a truly empowered private sector. While this rhetoric obscures the fact that Kenya remains a very difficult, dangerous, and expensive place to do business, the very gesture of reaching out to the ACCK seems to us important and noteworthy. This is the first time in memory that a Kenyan President has addressed a foreign business association. The fact that Kibaki initiated this unprecedented interaction with the U.S. business community is a small but very positive sign that he desires greater bilateral engagement with the United States. Ranneberger