India and Kenya: Forging Strategic TIES

One of the most sought after destinations for bilateral engagement, Kenya is fast emerging as a strategic location on the Indian Ocean, and India needs to nurture this relationship, says Dr. Mohammed Khalid The Republic of Kenya is situated in east coast of Africa astride the Indian Ocean and midway between Gulf of Aden and Mozambique Channel. With an area of 582,646 sq km. Kenya has land boundaries extend to 3477 km, and it shares them with Sudan and Ethiopia in the north; Somalia in the east, Tanzania in the south and Uganda in the west. The shores touch the Indian Ocean, which lends it a coastline of 536 km.1 Kenyas coast is dotted with islands that provide harbours which have been used as shelters by seafarers and traders for centuries. The island of Mombasa (connected to the mainland by a causeway) is the largest coastal city and Kenya's busiest port. The port also serves the landlocked countries of Uganda, Rwanda, and Burundi. Kenya has two other important centers of commerce; the Lamu Archipelago is strategically close to the northern coast of Kenya, and the Funzi Island which lies 70 km south of Mombasa. Other large islands include Pate and Manda while smaller islands include Kiwayu, Manda Toto, Chale and Wasini Island. These islands are important extensions of Kenya in the Indian Ocean.2 Kenya has a maritime zone extending up to 12 nautical miles and an exclusive economic zone up to 200 nautical miles. Kenya has tremendous geopolitical importance, not only in east African region, but also in the Indian Ocean. The country's ports serve as conduits for commerce and aid across East Africa. World Food Programme shipments, destined for neighboring Somalia, terminate at the port of Mombasa. Nearly all of Kenya's neighbours rely on its ports, highways and logistics networks, for deliveries of goods, and access to international markets. The Mombasa Port, therefore, has the potential to control sea traffic to east Africa.3 Due to its strategic location, Kenya plays a significant role in regional trade, investment, infrastructure development and general economic growth. Despite many of its social and economic problems, Kenya is relatively prosperous, comparatively stable and host to the offices of many international organisations. Kenya maintains a free-

market economy, with a vibrant private sector, and therefore, has a strong position to maintain in the economic template of the region. For long, Kenya has been a peaceful sanctuary for its neighbours. Somalis, Ethiopians, Sudanese, Ugandans, Congolese, Rwandese and Burundians, have made Kenya their home while escaping the turmoil of their own countries. Kenya had earlier played a pivotal role in bringing peace in Sudan and Somalia. In fact, when domestic unrest after election in 2008 shook up Kenya, the country realised its strategic importance to East and Central Africa (ECA).4 During the unrest, Kenya's neighbours also suffered immeasurably as their routes for vital supplies --notably oil and essential commodities-and access to communications were disrupted with consumer products becoming dearer several times over. The neighbours were so perturbed and affected by the happenings in Kenya that Rwanda's president, Paul Kagame called for a military solution in Nairobi. All this illustrates Kenya's strategic relevance to the region.5 Because of the geopolitical importance of Kenya that United States has its largest embassy in Sub-Saharan Africa in its capital city of Nairobi. Besides, New York, Vienna, Rome and Geneva, Nairobi is a key bastion of the United Nations. It has become home to UN-Habitat, United Nations Environment Programme (UNEP), and many other UN agencies. Britain, China, Canada, Belgium, Russia, India, Israel, European Union (EU), Iran, Brazil, Pakistan and other major powers have diplomatic missions in Nairobi. The Bretton Woods Institutions and many of multinational corporations and NGOs operating on African continent have their regional bases in Kenya.6 According to 2007 census, Kenya had a population of 36,913,721, with a density of about 65 persons per sq km. Collating the population is, however difficult because of continuous movement of nomadic groups and regular influx of Somali refugees. About 58 percent of the population lives in rural areas, according to 2005 estimates. Average life expectancy in 2007 was 55.2 years for males and 55.4 years for females. About 11 per cent of the land is suitable for agriculture and about one third of this is arable, while remainder is used mainly for grazing. The northern region, covering two-thirds of Kenya, is mostly desert or semi-desert. Limestone, soda ash, salt, gemstones, fluorspar, zinc, diatomite, gypsum, are its key mineral resources. Deposits of titanium-and zirconiumbearing sands have also been found in multiple locations northeast of Mombasa.7

After independence, Kenya along with Tanzania and Uganda formed the East African Community in 1967, with the express aim of developing a common market in goods and services.8 Kenya had a GDP of US$63.52 billion, according to 2009 estimates, and had a per capita income of 1,600 US dollars.9 Agriculture contributed 21.4 percent to GDP, which was followed by industry (16.3 percent) and services (62.3 percent). The Country had a labour force of 17.47 million of which about 75 percent was engaged in agriculture and 25 percent in industry and services. Kenya produces tea, coffee, corn, wheat, sugarcane, fruit, vegetables, dairy products, beef, pork, and poultry. It has a small industrial sector, which produces consumer goods like plastic, furniture, batteries, textiles, clothing, soap, cigarettes, and flour. Oil refining, aluminum extracting, steel, lead, cement, and commercial ship repair, are some of its important industries.10 A regional hub for trade and finance in East Africa, Kenyas exports were estimated at US$4.479 billion in 2009, which comprised tea, horticultural products, coffee, petroleum products, fish, and cement. The UK accounted for 10.2 percent of its exports, Netherlands 9.4 percent, Uganda 9.1 percent, Tanzania 8.9 percent, US 6.4 percent, and Pakistan 5.7 percent. Kenyas imports were estimated at US$9.031 billion in 2009 which comprised machinery and transportation equipment, petroleum products, motor vehicles, iron and steel, resins and plastics. About 11.9 percent of imports came from UAE, 11.8 percent from India, 10.3 percent China, 8.3 percent Saudi Arabia, 5.9 percent South Africa, 5.3 percent Japan and 4 percent from the United States, in 2008.11 The Nairobi Stock Exchange is most important institution in the ECA region. Being the largest economy in the region, Kenya has well-developed communications facilities and is considered as the financial and investment capital of East Africa. Its economy is also well integrated with that of the region and the world in terms of trade, finance, commerce, manufacturing, transport and other services, including tourism and communications.12 India-Kenya relations India has a natural affinity with the aspirations of the people of the Sub-Saharan Africa. Mahatma Gandhi had said that India's own freedom will remain incomplete until

the entire continent of Africa was free from subjugation. Pandit Jawahar Lal Nehru also had forged strong bonds of friendship with the people of Africa. He made the liberation of Africa feature prominently in Indias foreign policy and work actively to achieve the goal. India has played a vital role in the decolonization of Africa and has supported the freedom struggle of Kenya, which later laid the foundations of a close and co-operative relationship between the two countries. India appointed Appa Saheb Pant as ita ambassador to East Africa, stationed in Nairobi, whose presence provided critical impetus to Kenya's freedom struggle.13 India's decision to open its first diplomatic mission in Nairobi, to oversee its relations with the rest of the region, underscored its desire to forge closer links with Kenya. The process of building close relations with Kenya continued even after latters independence in 1963. Historically, relations between the two countries go back to the time when Indians were brought to Kenya as indentured labour by the British to construct the KenyaUganda railway in 1896. Subsequently, the Indians also joined Kenyas booming coastal trade. As a result, by 1921, almost 25,000 Indians had settled in Kenya. However, the increasing Indian presence created a racial discord with the local community. As Indians enjoyed greater economic strength, they demanded representation in the local legislative council. The tensions continued till 1927, when finally the Indians won the right to five seats in the Council. But discrimination continued, even after Kenya won independence.14 However, in the wake of the discriminatory practices of the post-independence nationalist government and rising atrocities, several thousand of Indians fled Kenyato take shelter in the United Kingdom. In 1968, Kenya passed first of its many laws that barred Indians with British passports from holding gainful employment. Almost simultaneously, the Labour government in Britain, expecting an influx of its colored citizens from East African countries, limited the number of Indian families with British passports, to only 1,500.15 Ever since, then relations have improved slowly. Currently, there are about 100,000 people of Indian origin in Kenya --mostly concentrated in Nairobi and Mombassa. However, this number is well below their peak of 175,000 in 1962 (one year before the independence). Of the current lot, 75percent hold Kenyans citizenship, 10

percent are British overseas citizens, and the rest are Indian nationals. Together they hold 30-35 percent stake in Kenyan economy. Many in Kenya still hold the age old belief that Indians were exploiters who came "and took all the jobs and businesses away." Another reason why Indians are distrusted in Kenya is due to domestic politics. In Kenyan party politics, Indians have been traditionally associated with the Party of National Unity (PNU), headed by former President Mwai Kibaki.The Party has traditionally dominated the countrys politics since 1963. Kibaki belongs to the Kikuyu tribe, the main business community of Kenya, and Indians have strong business ties with the tribe. This equation upset the opposition Orange Democratic Movement (ODM), dominated by Luo tribe. However, in the 2007 general elections the ODM finally trounced PNU. Thereafter, riots broke out in 2008, which targeted people of Indian origin, especially Gujaratis.16 To foster social, cultural, educational and economic relations the Kenyan-Indians, formed Kenya-India Friendship Association (KIFA) in 1981. Headquartered in Nairobi, the association has strong in Mombassa and Kisumu. It organises activities to promote friendship between the two communities and has many success stories to tell. The Indian life can be seen throughout Kenya. Indian cuisane, malls, shops and wares dot almost every cornor of Kenya.17 Geographical access through the Indian Ocean brings India and Kenya closer and gives India critical advantage over trading rivals. In fact, India is an important source of goods and technology for Kenya. Kenyans of Indian origin also play an important role in nurturing and developing these relations. Above all, the two countries enjoy a shared perspective on international relations, especially in the context of South-South cooperation. This common bond of a shared vision for a free and fair new world has helped both the countries to come closer.18 The political leadership of both the countries has also displayed considerable rapport and understanding. Both the countries are members of Commonwealth, Group of 77, Indian Ocean Region Association for Regional Cooperation (IOR-ARC), and G-15. They usually coordinate their strategies to influence deliberations in order to put across the point of view of the developing nations. India has developed economic, social, political and cultural relations with Kenya.

Trade After Kenya attained independence in 1963, trade between the two countries grew steadily and significantly increased in 1980s. India is Kenya's sixth largest trading partner, which underscores close economic and cultural bonds. An agreement enabled both India and Kenya to accord each other the most favoured nation status. In addition, both have encouraged direct trade, taking into account mutual benefits accruing to them. Following the introduction of economic liberalisation in both the countries in early 1990s, the volume of trade further increased making them major trading partners. India is largest source of imports for Kenya (14.1 percent of its total imports). The main items of import include machinery and instruments, rubber products, metals, glassware, inorganic chemicals and agro-chemicals. Total imports to Kenya during 20002001 were 6.36 billion, registering a growth of around 22 percent over the previous year. Exports from Kenya to India was valued at 850 million during 2000-2001, which included cashew nut, precious and semi-precious crude minerals and raw wool.19 The trade between the two countries has been guided by the India-Kenya Joint Trade Committee (JTC), which meets from time to time to review progress. India has offered technologies for the development of small scale industries in Kenya, and has promised to extend help to enhance agricultural output. India has also offered to set up Export Processing Zones, initiated joint ventures in textiles, deepen co-operation in tea, coffee and tourism sectors and develop infrastructure, with emphasis on Build Operate Transfer (BOT) model.20 To enhance trade with Kenya and other African Countries, India initiated the Focus Africa Programme on March 31, 2002, along with an EXIM Policy for the years 2002-07. Under this programme, the Government of India extended assistance to exporters and Export Promotion Councils to visit African countries including Kenya, and organise trade fairs there. Apart from the Joint Trade Committee, the Federation of Indian Chambers of Commerce and Industry (FICCI) has helped deepen interaction with their trade and industry chamber counterparts and hold meetings of the Joint Business Councils (JBCs). Indias Trade/Economic Missions have created necessary awareness in their respective regions about economic reforms in India, the strength of Indian Industry,

and its export capabilities. Indian Trade Promotion Organisation (ITPO) undertakes various trade promotion measures, such as participation in specialised and commodity specific fairs & exhibitions in the countries of African continent. It also undertakes publicity and promotion of Indian consumer products in thecontinent.21 Investments in Kenya Of the total capital investment in Kenya, about 93percent comes from abroad. Of this 17percent comes from India, making it second-largest investor in the country after Britain. As the liberalisation spread around the world, many Indian companies headed to East Africa for lucrative investment opportunities. In November 2008, Indias Essar global decided to invest $500 million, over two years, in Kenyas mobile phone service operator Econet Wireless Kenya Limited. In addition, the company purchased a 50 per cent stake in Kenya Petroleum Refineries Limited at a cost of $ 11 million.22 Bharat Petroleum Corporation has invested $70 million in a joint venture with Kenya Pipeline Company Ltd, for the construction of an LPG plant in Nairobi. Indias Sanghi Group is investing over $80 million in a cement plant in Pokot. India-based conglomerate, Mehta Group, recently announced a plan to build a cement plant of 1.2 million-metric tonne capacity in West Pokot, at a cost of about $200 million in a phased manner.23 The Birlas have already set up 100,000 tonne paper plant at Webuie in eastern Kenya. Mohan Meakins set up wines and distillery unit and Kirloskars have an assembling unit. Telecommunications Consultants India Limited (TCIL) has signed a long-term contract for setting up and manning six regional telephone exchanges in Kenya. In 1991, India had 10 Joint ventures in Kenya, which later increased to 14.24 Bharti Airtel Ltd, Reliance Communications Ltd and the Tata Group had bid in 2007 for 51 percent stake in state-owned Telkom Kenya. The Life Insurance of India (LIC) has also set up its operations under the name Kenindia Assurance Co.Ltd., based in Nairobi. The Endeavour Group, dealing in manufacturing and trading Industrial Electronic Weighing Systems, has set up business offices in Kenya.

Though it seems as if Indians have entered Kenyan Market in a big way, the truth is that Kenya accounts for only 0.03 percent of the total Indian investment abroad, ranking it at 19th position. Kenya recently sought fresh investments from Indian entrepreneurs in sectors, such as fertilisers and pesticides, pharmaceuticals (specifically for the manufacture of anti-malarials), dairy products and hospitality. An MoU was signed between FICCI and East African Business Council to enhance trade relations between India and East African Community (EAC) countries and to identify bottlenecks in the expansion of economic cooperation. Also, Bank of Baroda, Bank of India, and ICICI, have opened their representative offices in Kenya while State Bank of India went further and invested in Kenyas banking sector. Exchange of high level visits To continue the close relations, high level visits have taken place from time to time. Kenyan President Arap Moi visited India in 1981. He again visited India in 1983 to attend the Non-Aligned Summit and Commonwealth Head of the Government Meet. Summit. Kenyan Foreign Minister, Moses Wetangula visited India in April 2008 and represented President Mwai Kibaki at the India-Africa Forum Summit Similarly, Prime Minister Raila Odinga, led a delegation to India to participate in the Vibrant Gujarat Global Investors Summit in January 2009. Former Indian President Neelam Sanjeeva Reddy and then Prime Minister Indira Gandhi visited Kenya in 1981. Indias former Minister of External affairs M.S. Solanki visited Kenya in September 1991. The political leadership of both countries has always displayed close relations, rapport and understanding of each others views both on bilateral and multilateral issues. The first India-Africa summit was held in New Delhi in April 2008, with an aim to forge a strategic economic partnership between the two regions, strengthen Africa India relations, and consolidate South-South co-operation. Prime Minister Manmohan Singh had offered preferential market access to 34 countries in Africa and called for turning the 21st century into a "century of Asia and Africa". Kenyas Prime Minister Mwai Kibaki was one of the key participants in the summit. Educating Kenyan nationals in India

Since 1950s many Kenyans have come to India to pursue higher education. In addition, over 50 trainees benefit from Indian Technical and Economic Cooperation and Indian Council for Cultural Relations Scholarship schemes every year. Kenyas defence personnel have also been attending senior level training programmes in India. In 2003 Educational Consultants India Limited (Ed.CIL) organised an Indian Education Fair in Kenya followed by FICCI and UGC, who jointly organised an Indian Education Fair in which 18 Indian universities took part. In 2006, Guru Nanak Dev University and 13 affiliated colleges held an Education Fair in Nairobi. . Over 7000 Kenyan students pursue higher studies in about 50 Indian universities and higher education institutions.27 The Indian Government is offering 43 Scholarships to Kenyans in both undergraduate and post graduate studies. They are in the following categories: No 1 2 3 4 5 Total Category General Cultural Scholarship Scheme (GCSS) Commonwealth Scholarship/Fellowship Plan (CSFP) Africa Scholarship Scheme Cultural Exchange Programme Africa Day Number Level 12 Undergraduate 04 20 06 01 43 Postgraduate Undergraduate Postgraduate Undergraduate

Source: http://serveafrica.info/indian-government-scholarship-20092010-for-kenyans Technical cooperation In the spirit of South-South cooperation between India and Kenya, Unite Nations Industrial Development Organisation took up a project to revitalise and up-grade Kenya Industrial Research & Development Institute (KIRDI) and facilitate Indias contribution to the industrialization of Kenya. Priority areas identified by KIRDI for technical cooperation with India included, Computer Software and Hardware Development, Leather, Engineering & Machine Tools, Cement and Building Materials, Renewable Energy, Garments, Agro-based industries, Coir, and Industrial and IT Parks.25 According to an agreement signed in December 2008, Indias National Research and Development Corporation (NRDC) offered to assist Kenya in value addition, packaging and technological interventions to help agricultural output. Indias National Small Industries

Corporation (NSIC), also has signed an agreement with Kenya Industrial Estates (KIE) in May 2009 to transfer technology, and develop micro, small and medium enterprises. Under the partnership, small traders in Kenya would get technology support and technical skills from India while KIE will facilitate enterprise-to-enterprise contact and the marketing of NSIC products in the region.26 India also promised Kenya help in carrying out industrial potential surveys and feasibility studies to identify important areas and opportunities for the development of small enterprises. India will also help set-up Business Incubator Centres for demonstration and training for start-up entrepreneurs, and will assist Kenya in developing policy and institutional framework for small and medium enterprises. Cultural Exchange Due to the presence of a large number of Indians, cultural exchanges between the two countries have traditionally been very strong. Many Indian cultural troupes also regularly visit Nairobi. On July 22, 2003, India and Kenya signed an agreement for expanding cultural relations. Many Indian film producers, directors and actors have visited Nairobi. Bharatnatyam dance groups, Manipuri Martial Arts Troupe, Classical, Gazal and Bhajans singers, and Bihu Dance Groups among others have visited Kenya in recent years.28 The ICCR has facilitated the travel of Indian scholars and artists to Kenya for lectures and interaction with their counterparts at conferences. Recently they organised Annual Music Festival in Kenya. Defence Cooperation In 2004, the Kenyan armed forces had a total strength of about 24,120 which included the army, the navy and the air force.29 With the third largest army in the world and the largest navy in the Indian Ocean region. India is a responsible stakeholder in the international system and a formidable power in the Indian Ocean. As part of its defence cooperation, India has extended training to a large number of African military officers, over the years, in its various military institutions. Currently, India has military-to-military cooperation activities, primarily related to the training, with many African countries. India is one of the largest contributors to UN peacekeeping missions in Africa and

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currently has sizeable contingents in the Democratic Republic of Congo, Southern Sudan, Ethiopia and Eritrea. India has also deployed military training teams in a number of African countries such as Botswana, Zambia, and Lesotho. To build up Kenyas defence capabilities, India has supplied military hardware in the past. Both the countries conduct Joint Exercises of their military forces. Many of the Kenyan military Commanders, including retired ones have attended various courses in India.30 This cooperation has been extended to involve military personnel in civil projects, in the areas of health and education especially in Kenya. During the International Fleet Review in February 2001 (held off Mumbai) 30 countries participated and Kenya sent two ships for the Review. Cooperation at sea Being strategically located near the busy sea route, the maintenance of clear and safe sea-lanes on its coast is paramount for the sovereignty and security of Kenya. Safety of these sea-lanes is vital to economy and national security of many countries in and around the Indian Ocean Region. Pirates are very much active on the coast of East Africa. An Ukrainians ship laden with arms, and destined for Kenya, was recently hijacked by the pirates. Kenya has till now been ineffective in dealing with this menace. Kenya and India are Original and founding members of IOR-ORC. The Association disseminates information on trade and investment regime with a view to help the region's business community understands the impediments to trade and investment in the region. Indian Ocean Rim Network (IORNET) serves as the information point for the IORARC, which comprises Australia, Bangladesh, India, Indonesia, Iran, Kenya, Madagascar, Malaysia, Mauritius, Mozambique, Oman, Singapore, South Africa, Sri Lanka, Tanzania, Thailand, United Arab Emirates and Yemen.

Conclusion India and Kenya are geographically part of the Indian Ocean littoral. India has had historical relationship with Kenya. The Presence of large ethnic Indian population in Kenya helps strengthen the relations between the two countries. With India emerging as a 11

regional power house in the Indian Ocean region, its economy and the corporate sector has the potential to forge relations with the countries of the region individually, and at collective level. Building a long standing relationship with Kenya is all the more beneficial as it further opens the doors to Rwanda, Burundi, Congo among others. Kenya has an agrarian economy and India can help the country in many sectors such as agriculture, industry and IT. Today, Africa figures significantly in the security and geostrategic considerations of many countries within the Indian Ocean area. Africa is fast emerging as one of the most sought after destinations for bilateral engagement. Countries like US and China have already taken the lead in engaging Africa. India, therefore, needs to expedite efforts to forge stronger relations with African nations. This will not only benefit India economically but will also serve its long-term security interests. Kenya and India have borne the brunt of terrorist activities in the past and continue to be on the terrorist hit-list. Both the countries can set up joint mechanism by sharing information. In the recent years, the Somali coast, in the vicinity of Kenya, has been repeatedly targetted by pirates, threatening the safety of Sea lanes of Communications (SLOCS). India, with a large navy and capability to patrol the sea, has already displayed its presence on the Somali coast. India can help Kenya in providing training, logistic support and equipment to stregthen Kenyas sea front. Kenya is critically and strategically located in the eastern portion of Africa. It is a large and stable nation and is a regional anchor. It has adequate infrastructure, military base, and communications networks. Its stability is paramount for the region. By developing greater cooperation with Kenya, India can better serve its economic and strategic interests around the Indian Ocean region.

References:1. Kenya Political Map http://www.mapsofworld.com/kenya/kenya-political-map.html; for kenyas boundaries with its neighbours and the Indian Ocean, see, http://geography.about.com/library/cia/blckenya.htm

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2. Ojany, F.F and Ogendo, R.B: Kenya: A Study in Physical and Human Geography, Longman, 1974; Waters, G.H.C and Odero, J.P: Geography of Kenya, Macmillan Education, 1987; 3. De Blij, Harm J: Mombasa: an African city, Northwestern University Press, Evanston, 1968; Mombasa Kenya, at, http://www.kenyaspace.com/Mombasakenya.htm 4. When Kenya sneezes East Africa catches a cold. Despite its strategic importance, Kenya maintains a moderate profile in international politics. This "silent diplomacy" approach has enabled Kenyan businesses to expand all over the region without any trouble. See, New African, May 1, 2009. Also see, Gettleman, Jeffrey, Fighting Intensifies After Election in Kenya, New York Times, January1, 2008. 5. Kenya-Rwanda: Kagame calls for coup, Africa news, January 31, 2008. 6. List of companies and organizations based in Nairobi, http://en.wikipedia.org, retrieved on 28.3.10 7. For statistics on Kenya, see, http://www.unicef.org/infobycountry/kenya_statistics.html; Kenya Natural resources, http://www.indexmundi.com/kenya/natural_resources.html. 8. The East African Community (EAC) is the regional intergovernmental organisation of the Republics of Kenya, Uganda, the United Republic of Tanzania, Republic of Rwanda and Republic of Burundi with its headquarters in Arusha, Tanzania. See, East African Community Portal, at, http://www.eac.int/ 9. In 1997, the IMF suspended Kenya's Enhanced Structural Adjustment Programme due to the government's failure to maintain reforms and curb corruption. A drought in 1999 and 2000 compounded Kenya's problems, causing water and energy rationing and reducing agricultural output. As a result, GDP contracted by 0.2% in 2000. The IMF, which had resumed loans in 2000 to help Kenya through the drought, again halted lending in 2001 when the government failed to institute several anticorruption measures. Despite the return of strong rains in 2001, weak commodity prices, endemic corruption, and low investment limited Kenya's economic growth to 1.2%. Growth lagged at 1.1% in 2002 because of erratic rains, low investor confidence, meager donor support, and political infighting up to the elections. In December 2002 elections, Daniel Arap MOI's 24-year-old reign ended, and a new opposition government took on the formidable

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economic problems facing the nation. After some early progress in rooting out corruption and encouraging donor support, the KIBAKI government was rocked by high-level graft scandals in 2005 and 2006. In 2006, the World Bank and IMF delayed loans pending action by the government on corruption. The international financial institutions and donors have since resumed lending, despite little action on the government's part to deal with corruption. Post-election violence in early 2008, coupled with the effects of the global financial crisis on remittance and exports, reduced estimated GDP growth below 2% in 2008 and 09. See, Kenya Economy 2010, See, World Fact Book of the United States Central Intelligence Agency, 2010. 10. Industrial Manufacturing: A brief overview of the industrial manufacturing sector in Kenya, http://www.pwc.com/ke/en/industries/industrial-manufacturing.jhtml. 11. See, Kenya Bilateral Trade Statistics, Ministry of Trade, Government of Kenya, available Intelligence Agency, op. cit., 12. For economic development in Kenya, see, Encyclopedia of the Nations, at, http://www.nationsencyclopedia.com/Africa/Kenya-ECONOMICDEVELOPMENT.html; 13. For for details of Nairobi Kenya Stock Exchange, see, see http://www.nse.co.ke/newsite/; http://en.wikipedia.org/wiki/Nairobi_Stock_Exchange India relations, http://www.zoominfo.com/people/Kenya_India_191997503.aspx 14. Gregory, Robert Granville: India and East Africa: a history of race relations within the British Empire, 1890-1939, Clarendon Press, Oxford, 1971; Mangat, J S: A history of the Asians in East Africa, c. 1886 to 1945, Clarendon Press, Oxford, 1969; Sheikh, Abdi S, Xenophobia: Why Rwanda style Genocide is likely in Kenya, http://www.scribd.com/doc/27696453/Xenophobia-in-Kenya 15. Lone, Salim, The Lost Indians of Kenya, The New York Review of Books, vol. 17, no.5, October 7, 1971. 16. Though no Indians were reported to have been killed in the upsurge of violence, which claimed around 300 lives so far, reports of extensive damage to property and shops owned by Indians are filtering through. Indian community leaders and religious heads in at, http://www.trade.go.ke/index.php? option=com_content&task=view&id=84&Itemid=117; The World Fact Book, the Central

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Nairobi called an urgent meeting late on Wednesday evening to take stock of the situation. In Kisumu, the 1,000-odd Indians who had taken shelter in the Swaminarayan temple, moved out after violence ebbed. Some fled to Tanzania and Uganda. Indians suffered a lot as properties of most Gujaratis were looted and burnt down. Only few Indian shops had opened in busy marketplaces industrial units belonging to Indians tried to work, but workers did not turn up in most cases. About ninety per cent of Gujaratiowned shops in Kisumu were looted and burned down. See, Kenya violence targets Gujaratis, The Times of India, January 2, 2008; Tharoor, Shashi, Were all Kenyans here, The Hindu, November 7, 2004; A New View of Kenya's 'Asians, Washington Post, March 15, 2000; Sreenivasan, T. P, Violence in Kenya: A plague in paradise, available at, http://www.rediff.com/news/2008/jan/10tps.htm; Fear spreads, Gujaratis pack up to flee Kenya, Times of India, January 3, 2008. 17. Some of the Indian institutions and organizations include, Arya Pratinidhi Sabha Eastern Africa, Aga Khan Ismaili Council of Kenya, Arya Samaj, Dawoodi Bohra Muslim Community, E.A. Rajput League, East Africa Shree Swaminarayan Mandal, Hindu Council of Kenya, Indian Citizens' Welfare Association of Kenya, Kenya Brahma Sabha, Kenya-India Friendship Association, and Lohana Mahajan Mandal etc. See, Indian Associations, Organisation & Communities in Kenya, NRI Reality News, available at, http://www.nrirealtynews.com/kenya.php. 18. The UNIDO Centre for South-South Industrial Cooperation (UCSSIC), New Delhi, is implementing a project for revitalization and technical up-gradation of the Kenya Industrial Research & Development Institute (KIRDI) through south-south cooperation, facilitating Indias contribution to the industrialization of Kenya, see, South-South cooperation between India and Kenya, at, https://www.onudi.org.ar/index.php? id=7881&tx...319 19. For Kenya-India Import/Export Trade Statistics from 1998 to 2007, see, http://www.trade.go.ke/images/stories/pdf/India_1.pdf. 20. A Joint Commission between India and Kenya was set up in December 1999. The first meeting of the Joint Commission was held in Nairobi on 21-22 July 2003. The Indian delegation was led by the then MOS for External Affairs, Shri Digvijay Singh. Kenyas delegation was led by Kalonzo Musyoka, the then Minister for Foreign Affairs

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(now Vice-President). PM asks India to import more Kenyan goods, aired by Kenya Broadcasting Corporation, November 20, 2008. 21. The Ministry of Commerce and Industry, Government of India announced the Focus Africa Programme with a focus on seven countries of Sub-Saharan Region --South Africa, Nigeria, Mauritius, Tanzania, Kenya, Ghana and Ethiopia on 31st March 2002. See, EEPCINDIA, Engineering the Future, at, http://www.eepcindia.org/africa.asp; Maran Launches Focus: Africa Programme, Press Release, Government of India, Ministry of Commerce and Industry, Department of Commerce, March 31, 2002. 22. Essar Global to invest $500 million in Kenyas mobile market (Kenya), Wireless Mobile Telecom Wireless News, August 22, 2008; Njiraini, John, Indian group buys into Kenyan refinery, promises to invest $400m over three years, Engineering News online, August 14, 2009. 23. Mehta Group sets its feet in cement business, African Business and Economy News, June 9, 2009. 24. Ritu Srivastava, and Krishan Kumar, Indian Business Ventures Abroad, Working Paper No. 2001/21, IIM Lucknow. 25. With a view to study developments in India and establish links for industrial cooperation, a high-level delegation led by Permanent Secretary, Ministry of Industrialization, Government of Kenya, along with senior officials of the Government of Kenya, KIRDI, Kenya Intellectual Property Institute, JUA KALI (National Association of MSMEs) visited India during 2-12 November 2008. The delegation visited some important Industrial Training Centres/ Institutes/ Industrial Parks/ Industrial units in India with a view to replicating best practices and appropriate technology so as to enable KIRDI to become a one stop shop for technology and industrial development in the region. See, South-South cooperation between India and Kenya, op. cit., 26. Kenya, India to beef up ties in small industry sector, Thaindia News, available at, http://www.thaindian.com/newsportal/business/kenya-india-to-beef-up-ties-in-smallindustry-sector_100192815.html#ixzz0jdekPAhq 27. Mutula Stephen M, University Education in Kenya: current developments and future outlook, International Journal of Education Management, vol. 16, issue 3, 2002, pp. 109-119.

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28. Film director Shri Shyam Benegal visited Kenya in July 2006 and gave talks on filmmaking. A 5 member Bharatnatyam dance Group led by Ms Sonal Mansingh visited from 2731 October 2006. A delegation of Hindi film makers led by Shri Raju Hirani at the invitation of Kenya Film Corporation visited Nairobi from 9-11 February 2007. A Manipuri Martial Arts Troupe visited Kenya from 7-11 July, 2007 and performed in Nakuru and Nairobi. A Light Classical Gazal Group visited Kenya from 21-23 October, 2007 and performed in Nairobi. An evening of Bhajans, devotional songs and a Guest Lecture was organised on the occasion of Gandhi Jayanti on 5th October, 2007. A 13member Bihu Dance Group visited Kenya from 19-23 November 2007 and performed in Nakuru and Nairobi. 29. For statistics about Kenyan army, navy, and air force, visit at, http://www.nationmaster.com/country/ke-kenya/mil-military; also see, Ministry of State for Defence, The Kenya Government official website, http://www.mod.go.ke/ 29. Bore, Benjamin Betts: Kenya India Relations 1963-1990, Ph. D Thesis, submitted to Jamia Millia Islamia, New Delhi, 1995, pp. 96-179. 30. See, official website of Kenyan High Commission in New Delhi, at, www.kenyamission-delhi.com/defence

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