KEPSA Co-Hosts Kenya-Hungary Business Forum: Forging Stronger Economic Links and Future Collaborations

In a significant move aimed at bolstering international trade and investment, the Kenya Private Sector Alliance (KEPSA), in partnership with the Embassy of Hungary and other key stakeholders, successfully co-hosted the Kenya-Hungary Business Forum on June 16, 2025. This high-profile event, held in Nairobi, served as a crucial platform to facilitate robust business-to-business (B2B) engagements between Hungarian and Kenyan enterprises. The forum’s overarching objective was to pave the way for strategic collaborations, joint ventures, technology transfer, and potential export and distributorship arrangements, thereby strengthening economic linkages between Kenya and the European nation.

The forum attracted a notable contingent of Kenyan business leaders and a delegation of 10 Hungarian companies. These companies represented sectors deemed vital to both economies, including Information and Communication Technology (ICT), agriculture, animal feed production, water treatment, and health. The growing bilateral trade relationship was underscored by impressive figures: trade turnover between Kenya and Hungary increased by a commendable 30% to nearly $14 million in 2024, demonstrating a positive trajectory for economic cooperation.

The Forum’s Genesis and Objectives: A Platform for Opportunity

The idea behind the Kenya-Hungary Business Forum stems from a shared vision to actively create platforms for private sector members to explore and capitalize on diverse trade and investment opportunities. KEPSA, as the umbrella organization of the private sector in Kenya, plays a pivotal role in this. Representing over one million businesses, from multinational corporations to micro, small, and medium-sized enterprises (MSMEs), KEPSA is dedicated to being the voice of Kenya’s business community, engaging with and influencing public policy to create a more conducive business environment. Its involvement in co-hosting such forums is central to its mission of supporting businesses with networking, financial linkages, mentorship, and access to markets.

The specific objectives of the Kenya-Hungary Business Forum were multifaceted:

1. Facilitating B2B Engagements: Creating direct matchmaking opportunities for companies from both nations to meet, discuss potential partnerships, and explore synergies. This direct interaction is crucial for building trust and identifying concrete business opportunities.
2. Paving the Way for Strategic Collaborations: Moving beyond simple trade to foster deeper relationships, including joint ventures where Kenyan and Hungarian companies co-invest and co-operate on projects.
3. Promoting Technology Transfer: Hungary, with its strong technological base in certain sectors, can offer valuable expertise and innovation to Kenya, particularly in areas like water treatment and agricultural technology. The forum aimed to facilitate the transfer of such knowledge and technical know-how.
4. Exploring Export and Distributorship Arrangements: Opening channels for Kenyan products to access the European market via Hungary, and similarly, for Hungarian products and services to find distributorship in Kenya and potentially the wider East African region.

This forum builds upon previous engagements, reflecting a continuous effort to expand and deepen the bilateral economic relationship between the two countries.

Strengthening Bilateral Ties: Hungary’s Vision for Africa

The forum provided a significant platform for Hungarian officials to articulate their nation’s strategic interest in Africa. H.E. Azbej Tristan, State Secretary for the Aid of Persecuted Christians and the Implementation of the Hungary Helps Programme, highlighted the profound importance of mutual respect and trust as foundational elements in any meaningful partnership. He reaffirmed that Hungary’s engagement with Africa is firmly rooted in a commitment to development and stability, rather than solely economic exploitation.

The Hungary Helps Programme is a unique initiative launched by the Hungarian government. It embodies a distinctive approach to foreign aid and humanitarian assistance, primarily focusing on providing “on-site assistance” to communities in need, particularly persecuted Christian and other minority groups globally, including in the Middle East and Sub-Saharan Africa. The core philosophy is to establish conditions that enable people to remain in their homelands or return to them after conflict or crisis, thereby reducing migration pressures. This program undertakes projects such as reconstructing dwellings, hospitals, schools, orphanages, and churches, directly contributing to the medical, social, educational, and religious life of affected communities.

In his address, H.E. Azbej Tristan outlined several notable projects that exemplify Hungary’s commitment to this vision:

• Wastewater Treatment and Irrigation Technology in Kenya: These projects are critical for Kenya’s sustainable development, addressing challenges related to water scarcity, sanitation, and agricultural productivity. Hungarian expertise in these areas offers tangible solutions to pressing needs.
• Major Investments in Angola and the Democratic Republic of Congo (DRC): Totaling over $850 million, these substantial investments demonstrate Hungary’s broader commitment to economic engagement and development across the African continent. Such large-scale capital injections contribute significantly to job creation and infrastructure development.
• Agricultural Cooperation, including a Hungarian Model Farm in Kenya: This initiative serves as a successful showcase of practical bilateral ties. A model farm allows for the transfer of advanced farming techniques, agri-tech innovations, and sustainable agricultural practices directly to Kenyan farmers, aiming to enhance productivity and food security. This collaborative approach moves beyond traditional aid to focus on capacity building and long-term sustainability.

These initiatives underscore Hungary’s emphasis on genuine partnership and practical development solutions that align with the needs and priorities of African nations.

Deepening Bilateral Relations: The Ambassador’s Perspective

H.E. Zsolt Mészáros, the Ambassador of Hungary to Kenya, reflected on the remarkable growth of bilateral relations since the last business forum held in 2016. His remarks highlighted a multifaceted enhancement of ties, extending beyond mere commerce to encompass a broader spectrum of cooperation:

• Increased Trade: The 30% increase in trade turnover to nearly $14 million in 2024 is a clear indicator of growing economic engagement. While this figure might appear modest compared to other major trading partners, it signifies a strong upward trend and potential for further expansion. Hungarian exports to Kenya in 2023 primarily included edible preparations, nitrogen compounds, and used clothing, while Kenya’s exports to Hungary focused on live plants, broadcasting equipment, and aircraft parts.
• Development Assistance: Hungary’s commitment to providing targeted development assistance complements its investment initiatives, focusing on areas of critical need in Kenya.
• Cultural Exchange: Cultural exchange programs foster deeper understanding and appreciation between the two nations, building bridges beyond economic transactions.
• Education: A particularly impactful area of cooperation is education. Ambassador Mészáros proudly noted that Hungary had provided 200 scholarships to Kenyan students. These scholarships offer invaluable opportunities for Kenyan youth to pursue higher education and specialized training in Hungary, acquiring skills and knowledge that can contribute significantly to Kenya’s development upon their return. This educational partnership has been a cornerstone of their deepening ties, with recent agreements in March 2025 further emphasizing cooperation in education, agriculture, and even nuclear power development for peaceful uses. Kenya is also planning to establish an embassy in Budapest, signaling even closer diplomatic engagement.

The Ambassador also extended gratitude to all partners involved in organizing the event, recognizing that such forums are the result of collaborative efforts between governmental, private sector, and diplomatic entities.

Kenya’s Economic Prowess and Investment Climate

Kenya’s prominent status as a regional economic powerhouse was a recurring theme at the forum, championed by Dr. Tim Theuri, CEO of the Kenya Healthcare Federation (KHF) – a key KEPSA Health Sector Board. Dr. Theuri painted a compelling picture of a nation ripe for investment, highlighting several key strengths:

• Strong Private Sector: Kenya boasts a dynamic and robust private sector, which is recognized as the primary driver of economic growth and job creation. KEPSA’s role in advocating for and empowering this sector is crucial.
• Well-Educated Workforce: A literate and increasingly skilled workforce is a significant asset for attracting foreign direct investment (FDI). Kenya’s impressive 80% literacy rate indicates a strong foundation for human capital development.
• Significant Investments in Key Sectors:
  • Agriculture: As the bedrock of the Kenyan economy, agriculture continues to receive substantial investment, aiming for enhanced food security and increased farmer incomes. Initiatives include adopting technologies for productivity enhancement and sustainable management practices.
  • Digital Technology: Kenya has made remarkable strides in digital transformation. With 85% internet penetration, the country is a leader in mobile money and digital services. This widespread connectivity and digital literacy create fertile ground for investments in ICT and fintech.
  • Renewable Energy: Kenya is a global leader in renewable energy. Dr. Theuri highlighted that an impressive 75% of Kenya’s energy already comes from renewable sources. This is largely driven by its rich geothermal, hydro, and wind resources. The country aims for 100% renewable energy by 2030 and carbon neutrality by 2050, with ambitious goals for solar power and battery energy storage systems (BESS) to enhance grid resilience. Notable projects like the Lake Turkana Wind Project exemplify its commitment. This strong renewable energy profile offers attractive opportunities for green investments.
• Digital Security Laws and Infrastructure Development: Recognizing the importance of a secure digital environment for business, Kenya has invested in robust digital security laws and continues to develop its digital infrastructure. This commitment is vital for protecting data, ensuring secure transactions, and fostering a trustworthy digital economy.
• Substantial Construction Investment: A notable US$5.9 billion invested in construction indicates ongoing infrastructure development, which supports overall economic growth and creates opportunities across various sectors.
• Largest Budget in East Africa: Kenya’s national budget, strategically prioritizing agriculture, manufacturing, and infrastructure, is the largest in the East African region. This reflects the government’s commitment to enabling economic transformation and providing a stable investment climate. The budget’s focus areas align well with the Hungarian companies’ expertise, creating clear avenues for partnership.

Kenya’s economic resilience, despite challenges such as liquidity pressures and inflation, is underpinned by its diversified economy and strategic reforms. Its projected GDP growth of 4.9% on average during 2025–2027 further enhances its appeal as an investment destination.

Facilitating Partnerships: The B2B Matchmaking Sessions

A cornerstone of the Kenya-Hungary Business Forum was the inclusion of tailored B2B matchmaking sessions. These sessions are crucial components of any effective business forum, moving beyond general discussions to facilitate direct, one-on-one meetings between potential partners.

The design of these sessions aimed to:

• Identify Synergies: Allow Kenyan and Hungarian enterprises to explore specific areas of mutual interest where their capabilities and market needs align.
• Forge Trade and Investment Partnerships: Directly lead to concrete outcomes, whether in the form of export/import deals, distributorship agreements, technology licensing, joint ventures, or direct investments.
• Overcome Information Asymmetries: Provide a structured environment where companies can quickly assess compatibility and build relationships, overcoming the barriers of geographical distance and unfamiliarity with foreign markets.

These sessions are often meticulously organized, with pre-scheduled meetings based on registered companies’ profiles and stated interests, maximizing the efficiency and effectiveness of the interactions.

Voices from Key Stakeholders: European and National Perspectives

The forum benefited from the insights of other influential leaders, highlighting the multi-stakeholder approach to fostering international economic relations.

• Mr. Filippo Amato – Head of Trade, Delegation of the European Union to Kenya: His presence underscored the broader European Union’s commitment to strengthening trade relations with Kenya. The EU is Kenya’s largest export destination, accounting for 14% of its total exports, with total trade reaching EUR 3.4 billion in 2023. The recent entry into force of the EU-Kenya Economic Partnership Agreement (EPA) in July 2024 signals a new era of strengthened economic cooperation. The EU’s Global Gateway strategy, focusing on sustainable and quality infrastructure and investment, aligns well with Kenya’s development priorities, providing significant opportunities for collaboration that extends beyond just Hungary.
• Mr. Gábor Jenei – CEO, Hungarian Export Promotion Agency (HEPA): As the head of Hungary’s dedicated export promotion agency, Mr. Jenei’s participation highlighted Hungary’s proactive approach to expanding its global trade footprint. HEPA’s mission is to enhance export activities and ensure Hungarian goods and services find their rightful place in international markets. This includes providing market research, strategic consulting, and supporting Hungarian companies’ participation in international exhibitions. His presence signaled the tangible support available to Hungarian businesses looking to engage with Kenya.
• Ms. Stacey Ruto – Kenya National Chamber of Commerce and Industry (KNCCI) representative: The KNCCI is Kenya’s largest business membership organization, working to protect the commercial and industrial interests of the Kenyan business community. Its role includes advocating for a favorable business environment, promoting trade both domestically and internationally, organizing exhibitions, and providing essential business information services. Ms. Ruto’s contribution represented the voice of Kenyan businesses, ensuring their interests and capacities were well-represented in discussions with Hungarian counterparts. The KNCCI’s vision is to foster a “vibrant and prosperous business community” and its mission is to “facilitate and promote a sustainable business environment for economic growth and prosperity.”

The collective perspectives from these diverse stakeholders provided a comprehensive overview of the opportunities and frameworks available for fostering stronger economic ties.

Looking Ahead: The Future of Kenya-Hungary Economic Links

The Kenya-Hungary Business Forum represents a significant step in the ongoing journey to forge deeper economic links between the two nations. The positive trajectory of bilateral trade, coupled with Hungary’s strategic investments and development assistance, indicates a promising future for this partnership.

For Kenya, strengthening ties with Hungary and other European nations offers several benefits:

• Diversification of Trade Partners: Reducing reliance on traditional markets and expanding export opportunities to new regions.
• Access to Technology and Innovation: Leveraging Hungary’s expertise in areas like water treatment, agriculture, and potentially advanced manufacturing to drive local innovation and industrialization.
• Increased Foreign Direct Investment (FDI): Attracting more Hungarian capital can contribute to job creation, infrastructure development, and overall economic growth, aligning with Kenya’s “Vision 2030” goals to become a middle-income economy.
• Human Capital Development: The continued provision of scholarships and technical training programs will enhance Kenya’s skilled workforce, which is critical for long-term sustainable development.

For Hungary, Kenya offers:

• A Gateway to East Africa: Kenya’s strategic geographical location, robust infrastructure, and status as an economic hub make it an ideal entry point for Hungarian companies seeking to expand into the broader East African market, which boasts significant growth potential.
• Access to New Markets and Resources: Opportunities for Hungarian products and services in a growing consumer market, and potential for sourcing raw materials or agricultural products.
• Alignment with “Look East” Policies: Many European countries, including Hungary, are keen to diversify their international partnerships and strengthen engagement with dynamic African economies.

The forum’s emphasis on direct B2B engagements, facilitated by government and industry bodies, provides a practical model for translating high-level diplomatic intentions into tangible economic outcomes. The continued dialogue, follow-up on identified opportunities, and consistent political will from both sides will be crucial in ensuring that the potential generated by this forum translates into sustained economic growth and mutual prosperity. As Kenya continues its impressive development journey and Hungary seeks to expand its global economic footprint, their deepening partnership serves as a testament to the power of international collaboration in achieving shared development and trade objectives in an increasingly interconnected world.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

17th June, 2025