Kenya and the UK plan to build a $10 million (Sh1.3 billion) macadamia processing factory in Lamu.
Investments, Trade and Industry Cabinet Secretary Salim Mvurya said this is a significant step in enhancing bilateral trade and investment between the two countries. The new factory is expected to create more than500 jobs for Lamu and Kwale residents.
The development aligns with the broader economic partnership agreement established between Kenya and the UK in 2018.
CS Mvurya was speaking when he hosted a delegation of UK government officials led by High Commissioner Neil Wigan on Tuesday.
Recent strides in this partnership include a newly signed MoU with the British Chamber of Commerce aimed at improving trade relations and business environments.
Kenya has also welcomed the UK support in reducing flower export tariffs from 10 per cent to five per cent.
Mr Wigan said discussions on the Railway City project in Nairobi are also progressing with the Ministry of Transport.
Further, the UK has committed 540,000 euros (Sh77 million) in a programme with TradeMark Africa and the Kenya Association of Manufacturers to support small and medium-sized enterprises, improve border and customs facilities, and streamline tax procedures to boost Kenyan exports.