France recognises that Kenya plays a key role in regional stability. Cooperation between both countries has increased especially after the inclusion of Kenya in the Priority Solidarity Zone by the French government in 1999. In 2011, the Prime Minister of Kenya, Raila Odinga and his French counterpart, François Fillon signed a declaration to strengthen the partnership between both countries. There have also been high level exchanges between both countries. Notable Kenyans to visit France also include Wangari Maathai and George Saitoti as. Notable French government officials include: Herve Morin, Rama Yade, Alain Joyandet, Jean-Louis Borloo, Chantal Jouanno, Nathalie Kosciusko-Morizet, and the parliamentary group for Franc-Kenya friendship.
Development cooperation
Kenya and France have signed multiple agreements on cooperation. Currently both countries are working on a new bilateral agreement for scientific cooperation. As of 2009, a five-year scientific agreement establishes the modalities of scientific and technical cooperation. In 2014, AFD, the French Development Agency, and the Government of Kenya signed 100 million EUR soft loan. Under the deal AFD will finance a project for the expansion of Nairobi’s water system. In 2013, a project to connect the Kenyan and Ethiopian power grids was signed. Under the deal AFD will provide a 91 million EUR soft loan. The conditions of the loans from AFD are soft. The loans have a 20 to 25-year period of maturity with a grace period of 7 years and an interest rate currently of less than 2%. Unlike many agreements being signed by Kenya, the loans are open for competitive bidding. This means the loan doesn't support French owned companies. China which has been Kenya's largest financier in recent years doesn't allow for competitive bidding in deals it signs. The deals are mostly meant to support Chinese owned firms, as they are the only firms allowed to execute the projects. Over the past decade AFD has contributed financing worth 1 billion EUR.
Trade
Kenya is France's primary trade partner in East Africa. From 2011 to 2012 French exports to Kenya increased 35%. Exports to Kenya in 2011 were worth, KES. 18.4 billion in 2012 they were worth KES. 25.3 billion. Exports to France from Kenya were worth KES. 8.3 billion in 2012, against KES. 9.3 billion in 2011. Trade is heavily in favour of France as Kenyan exports are largely made up of agricultural produce.
FDI
As of 2011 French FDI in Kenya was worth KES. 21.5 billion. Notable French firms in Kenya include Orange S.A. and Total. Air France-KLM also owns 26% of Kenya Airways, Africa's fourth largest airline. Kenya Airways has a direct flight from Nairobi to Paris. Other notable French firms include: Lafarge, Bolloré Africa, AGS, Air France Cargo, SDV Transami, L'Oréal, Pernod-Ricard, Alstom. Some French companies with regional headquarters in Nairobi, Kenya include: Danone, Alcatel, Alstom Grid, Sanofi, Veritas, Ceva Animal Health, Thales, Michelin, Sagem and Egis group. Nairobi is the regional headquarters for 20 countries for some of these firms.
