Sweden has signed a US $2.7 million (KSh 348 million) agreement with TradeMark Africa to launch the two-year Kenya Enhanced Trade Environment and Inclusion (KETEI) programme. Designed to accelerate sustainable, inclusive trade in line with Kenya’s commitments under the African Continental Free Trade Area (AfCFTA), KETEI will enhance port efficiency, green trade infrastructure, and the resilience of women- and youth-led micro, small, and medium-sized enterprises (MSMEs) (TradeMark Africa).

Programme Goals and Key Components

KETEI focuses on three core pillars:

1. Port Efficiency
   
2. Green Trade Infrastructure & Policy
   
3. MSME Resilience
   

1. Port Efficiency
Kenya’s principal maritime gateway, the Port of Mombasa, handles over 90% of the country’s seaborne trade and serves land-locked neighbours. Yet congestion, unpredictable berth schedules, and high diesel emissions from ocean-going vessels (OGVs) increase costs for exporters. Under KETEI, TradeMark Africa will pilot:

• Eco-Jetty Upgrades: Retrofitting two Mombasa berths with shore-power connections to cut OGV emissions by up to 20%, in line with ISO 14001 environmental standards.
  
• Digital Berth Management: Implementing a blockchain-enabled booking system to reduce average wait times from 3.5 days to under 2 days, mirroring successes seen in previous TradeMark Africa interventions (TradeMark Africa).
  
• One-Stop Port Clearance: Integrating customs, phytosanitary, and shipping-line data into a single window to streamline documentation, targeting a 25% cut in clearance time.
  

2. Green Trade Infrastructure & Policy
Climate-linked regulations—especially the EU Deforestation Regulation (EUDR)—are reshaping global supply chains. From 1 January 2026, the EUDR will bar commodities linked to deforestation (including coffee, tea, and cocoa) from EU markets unless traceability and compliance are demonstrated (TradeMark Africa). KETEI will:

• Support Standards Compliance: Train 200 agribusiness MSMEs on chain-of-custody protocols for EUDR, leveraging Kenya’s existing SPS certification framework.
  
• Green Logistics Hubs: Co-finance three inland cold-chain depots in Nakuru, Eldoret, and Kisumu—critical for horticulture and fish exports—by mobilising US $5 million in private capital.
  
• Policy Dialogue: Convene quarterly roundtables with the State Department for Trade to harmonise national trade policies with AfCFTA, EUDR, and the Pan-African Payment and Settlement System (PAPSS) standards.
  

3. MSME Resilience
Women- and youth-owned businesses account for 65% of Kenya’s informal sector and are disproportionately affected by market shocks. KETEI aims to bolster 120 MSMEs (60% women-led, 40% youth-led) through:

• Export Readiness Grants: Tailored financing and mentoring to help firms penetrate AfCFTA markets, with projected incremental exports of US $3 million over two years.
  
• Digital Platform Access: Subsidised subscriptions to regional e-commerce platforms—such as KiliMarket—to link producers directly with buyers in Nigeria, Ghana, and South Africa.
  
• Gender-Smart Coaching: Partnerships with the Kenya Women Microfinance Bank to conduct financial-literacy workshops, aiming to increase women-owned enterprises’ access to credit by 30%.
  

Aligning with National and Continental Trade Agendas

AfCFTA: Unlocking Intra-African Commerce

Since Kenya launched its AfCFTA strategy in 2022, the country has sought to bolster intra-continental trade, stimulate structural transformation, and diversify exports. The strategy’s three pillars—efficient export trade, inclusive MSME participation, and environmental sustainability—are echoed in KETEI’s design (HapaKenya).

• Secure Trade Corridors: Upgrading the Mombasa-Malaba corridor to EAC Electronic Single Window Status, reducing non-tariff barriers by 40%.
  
• SME Integration: Establishing “AfCFTA Helpdesks” at five border posts—Busia, Malaba, Namanga, Isebania, and Moyale—to assist SMEs with certificates of origin and customs procedures.
  
• Sustainable Value Chains: Promoting regenerative agriculture in coffee and tea estates in the Aberdares and Mount Kenya regions, aligning with the Kenya Climate Smart Agriculture Strategy.
  

EUDR: Safeguarding EU Market Access

In 2023, Kenya’s coffee exports reached US $252.12 million, with the EU absorbing 55% of that value (TradeMark Africa). Under the EUDR:

• Compliance Deadline: Medium and large companies face a 30 December 2025 cutoff; small and micro-enterprises have until 30 June 2026.
  
• Traceability Requirements: Detailed geolocation of farm plots, annual third-party audits, and public reporting.
  
• Risk of Non-Compliance: Up to €10 000 daily fines for placing non-compliant commodities on the EU market.
  

By preemptively equipping Kenyan producers with digital mapping tools and EUDR-aligned quality standards, KETEI seeks to avert potential market losses and reputational damage.

Sweden’s Role: Beyond Financing

At the signing ceremony in Nairobi, Marie Ottosson, Head of Sweden’s Kenya Development Cooperation Section, emphasised:

Sweden’s commitment is being channelled through the Swedish International Development Cooperation Agency (Sida), which has earmarked SEK 29.99 million for KETEI, of which SEK 10 million was disbursed in 2024 (Openaid). Sida will also provide technical assistance on impact measurement, ensuring that KETEI aligns with the UN Sustainable Development Goals—notably SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 8 (Decent Work & Economic Growth), and SDG 13 (Climate Action).

TradeMark Africa’s Track Record

Since its inception in 2010, TradeMark Africa has driven over US $549 million in incremental exports and facilitated US $88 million in port-related infrastructure investments. Highlights include:

• Mombasa Port Throughput: Annual growth from 27 million MT in 2016 to 34 million MT in 2020, with 1.36 million TEUs handled in 2020.
  
• Cargo Clearance Time: Reduced from 11.2 days in 2010 to 3.5 days in 2022, saving the economy US $110 million annually.
  
• One-Stop Border Posts: Completed 15 posts, cutting crossing times by 70% and saving US $62.8 million per year.
  
• Digital Trade Portals: Implemented over 60 single-window systems, lowering transaction times from 86 hours to 10 hours and costs from US $58 to US $8.
  
• Women in Trade: Empowered 200 000 women traders through information centres and capacity building.
  

Under KETEI, TradeMark Africa will leverage these lessons to deepen impact, particularly focusing on green logistics and MSME empowerment.

Expected Impacts and Metrics

Over the two-year lifespan of KETEI, projected outcomes include:

These metrics will be tracked via quarterly dashboards shared with Sida, the State Department for Trade, and private-sector partners, ensuring transparency and adaptive management.

Complementary Initiatives and Future Outlook

KETEI builds on a suite of regional and national efforts to green trade:

• The Northern Corridor Integration Projects (NCIP) are expanding rail capacity between Mombasa and Kampala, reducing road congestion and emissions.
  
• Kenya’s Climate Smart Agriculture Strategy is promoting agroforestry in coffee and tea belts, sequestering carbon while boosting yields.
  
• Green Garment Factory pilots in Nairobi are producing clothing from recycled shipping containers, showcasing circular-economy principles.
  

As KETEI unfolds, opportunities exist to scale successful pilots—such as eco-jetties and gender-smart finance—to other East African Community member states. Strong coordination with the African Development Bank and the World Bank’s Kenya Marine Fisheries & Blue Economy Programme could amplify impact and foster multi-country green trade corridors.

Conclusion: Charting a Sustainable Trade Future

Sweden’s US $2.7 million backing of the Kenya Enhanced Trade Environment and Inclusion programme marks a pivotal step toward a greener, more inclusive trade ecosystem. By modernising ports, aligning with international climate regulations, and empowering women- and youth-led SMEs, KETEI promises to bolster Kenya’s export competitiveness under both AfCFTA and EU market frameworks.

In an era where sustainability and market access are inseparable, such targeted public–private partnerships will be indispensable. As one exporter put it, “Green trade is no longer a niche—it’s a survival imperative.” With KETEI, Kenya is laying the groundwork for resilient growth that benefits businesses, communities, and the environment alike.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

30th May, 2025