Kenyan government officials have warned that the outcome of the British referendum to pull out of the European Union (EU) will have both positive and negative consequences for trade.
“It is not an issue we can question nor can we argue with the outcome. We can only support what the citizens want,” foreign affairs minister Amina Mohamed said Saturday after the referendum.
She said the impact of the vote would not be felt immediately because London had two years to negotiate the terms of exit. However, the effects would become clear afterwards.
“It is a process. It will not begin overnight. The Brexit would be a package to be negotiated over the next two years,” the foreign affairs Cabinet Secretary said.
She said Kenya would also negotiate the terms of trade with Britain as it exists the EU bloc. “There is no cause for concern,” Amina added.
British High Commissioner to Kenya Nick Hailey said as a civil servant, he was not in a position to comment on the outcome of the vote, but said the UK would ensure the vote outcome does not lead to negative consequences affecting Britain’s key trade partners.
At least 60 British companies operate from Kenya, including Barclays Bank, British Airways, British American Tobacco, Standard Chartered, beer brewer Diageo, pharmaceutical firm, GlaxoSmithKline, Uniliver, De La Rue, a currency printing firm, Finlays, a food processing firm and Tullow Oil.
Trade between Kenya and the UK currently stand at 1.3 billion pounds, according to UK government official documents and sources.
Kenyan finance minister Henry Rotich fears the impact of the vote would affect the foreign aid to poor countries in Africa.
“There are both negative and positive aspects of this vote,” Rotich said, pointing out at the fall of the British Pound against the US dollar and other currencies, which he said, would make it cheaper for Kenyan importers.
“The vote will have an impact on financial flows to Africa,” Rotich added.
Immediately following the outcome of the vote, the Central Bank of Kenya (CBK) announced its readiness to intervene in the currency markets to stop any negative consequences.
