Kenya and UK Target Stronger Trade Ties as Bilateral Commerce Surpasses Sh340 Billion

Trade between Kenya and the United Kingdom has entered one of its strongest phases in recent years, with the latest figures showing that total bilateral trade has surpassed Sh340 billion. The performance underscores a period of renewed commercial collaboration, investment flow, and policy alignment between the two economies following intensified diplomatic and trade engagements.

The latest data, jointly released by the British High Commission and Kenya’s Ministry of Investment, Trade and Industry, illustrates how export activity from both sides has been steadily rising across goods and services. Kenya’s exports to the UK reached Sh63 billion in goods and Sh71.5 billion in services in the year ending September 2025, while UK exports to Kenya grew to Sh134.6 billion from Sh124 billion in 2024.

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This expansion reflects broader economic dynamics, including shifts in global supply chains, stronger agricultural market integration, increased private sector confidence, and the acceleration of development-oriented trade frameworks such as the UK-Kenya Economic Partnership Agreement, which was confirmed through discussions documented by the UK Department for Business and Trade according to information available through the official UK government trade portal embedded in text through reference to the Economic Partnership Agreement discussions.

The Ministry of Investment, Trade and Industry in Nairobi has also highlighted ongoing efforts to strengthen market access for Kenyan agricultural and manufactured goods in line with national export growth strategies, as referenced in its publicly documented National Export Development Strategy available through the Ministry’s policy publications and implementation updates.

Key Export Drivers Behind the Trade Growth

The latest joint statement noted that total trade in goods and services rose by 11.9 percent over the previous year. This growth was fueled by an 8 percent rise in UK exports to Kenya and a 14 percent increase in Kenyan exports to the UK.

Agricultural commodities remain a core pillar of Kenya’s export profile to the UK. Products in the animal and vegetable category saw a 15.6 percent increase, reaching Sh28.7 billion. Beverages, including tea and coffee, rose 12.8 percent to Sh24.3 billion, supported by stable demand and an improved logistics environment, particularly in the tea auction markets and horticultural export chains.

The UK, for its part, saw sharp growth in exports of mechanical power generators, which rose by 18.3 percent, alongside increases of 12 percent in refined oil and 10 percent in automobile exports. These are largely linked to Kenya’s expanding infrastructure development agenda and private sector modernization programs, which have stimulated demand for industrial and mechanical equipment.

Such shifts reflect Kenya’s ongoing economic modernization drive, anchored in public-private sector cooperation initiatives documented in material from the Kenya Investment Authority, which has been actively promoting industrial and renewable energy investment missions involving UK firms.

Strengthening Policy Alignment and Bilateral Cooperation

According to Ed Barnett, an official from the British High Commission in Nairobi, both countries are accelerating efforts to reduce trade barriers and harmonize regulatory environments. Speaking during the release of the trade report, he emphasized that Kenya and the UK are moving from high-level partnership frameworks toward practical, results-oriented execution, noting that the renewed Strategic Partnership has already shown measurable outcomes.

“Our renewed Strategic Partnership is already delivering progress in a matter of months. To turn ambitions into reality, we’re working together to break down trade barriers. We go far when we go together,” Barnett said.

This Strategic Partnership includes areas such as trade facilitation, digital economy collaboration, climate finance mobilization, skills transfer, and enabling infrastructure. The collaboration is aligned with the UK government’s Developing Countries Trading Scheme, which aims to expand preferential access for developing economies, details of which can be reviewed within the framework of the DCTS policy guidelines provided by the UK’s trade departments.

Principal Secretary Regina Ombam, from the State Department for Trade, affirmed that the uptick in trade numbers reflects an expanding economic partnership, pointing to Kenya’s deliberate efforts to secure diversified export markets, enhance domestic value addition, and reduce vulnerability to price volatility in global commodities markets.

She noted that improving logistical capacity and modernizing standards certification remain key priorities under Kenya’s export competitiveness agenda, which is also documented through the Kenya Bureau of Standards export quality compliance programs accessible through its trade participation frameworks.

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Agriculture, Manufacturing, and Services as Priority Sectors

The agricultural sector remains the backbone of Kenya’s trade profile with the UK. Kenya continues to hold a significant position as one of the largest exporters of tea, cut flowers, and fresh vegetables globally. The horticulture export ecosystem in particular benefits from established logistics corridors through Jomo Kenyatta International Airport and coastal freight handling services.

However, the next phase of Kenya’s export strategy emphasizes value addition. For example, instead of exporting unprocessed tea leaves, Kenya aims to expand its footprint in branded retail teas in UK and EU markets. This approach aligns with Kenya’s broader industrialization agenda, including Special Economic Zones and Export Processing Zones, which feature in national trade corridor development documents referenced through Kenya Special Economic Zones Authority development updates.

The UK, meanwhile, has identified renewable energy, green financing, climate resilience, and digital transformation as key areas of partnership with Kenya. British companies are actively participating in Kenya’s solar, wind, and geothermal project development pipelines, supported by investment coordination efforts from the UK Export Finance programme, which provides financing instruments for cross-border investment projects.

Prospects for Doubling Trade by 2030

Both Kenya and the UK have formally stated their intention to double current trade volumes by 2030. Achieving this target will require targeted intervention in three primary areas:

1. Market Access and Standards Harmonization
   Continued alignment of certification, sanitary, and phytosanitary standards is critical, particularly for horticultural products. Technical cooperation efforts are being supported through bilateral trade working groups referenced in trade capacity building programs facilitated by technical agencies in both countries.
   
2. Investment Mobilization in Manufacturing and Green Energy
   The UK remains a leading partner in Kenya’s climate finance and sustainability transition efforts. Publicly documented finance commitments from UK institutions such as the Foreign, Commonwealth & Development Office support climate adaptation and clean energy.
   
3. Innovation and Skills Transfer
   Technology partnerships between British universities and Kenyan research institutions are being expanded to support agricultural research, digital services export capability, and advanced manufacturing training programs.

Conclusion: A Partnership Positioned for Long-Term Growth

As global economic relationships shift and trade blocs redefine their supply chain priorities, the Kenya-UK trade relationship is gaining strategic importance. Kenya provides access to the East African market, a strong agricultural export base, and a rising services sector, while the UK brings financing, technology, and high-value manufacturing capacity.

The latest trade data do more than reflect commercial exchange; they signify a maturing economic partnership that is transitioning from traditional trade patterns to a multifaceted strategic cooperation model.

If the policy execution pathways remain aligned and private sector engagement continues to accelerate, the bilateral target of doubling trade by 2030 is not just ambitious—it is achievable.

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By: Montel Kamau

Serrari Financial Analyst

6th November, 2025