The United Kingdom and Kenya have begun talks on a proposed Digital Trade Agreement aimed at making cross-border business easier, supporting e-commerce and encouraging technology investment between the two markets.
The negotiations represent a new digital dimension to the wider UK-Kenya Strategic Partnership agreed in July 2025. British High Commissioner to Kenya Matt Baugh said the planned agreement is intended to reduce barriers for companies operating across both markets while reinforcing Kenya’s position as a major African technology hub.
Key Overview
The proposed agreement could deepen economic ties by creating clearer and more efficient rules for digitally enabled trade, although the detailed provisions have not yet been publicly disclosed.
The initiative comes as bilateral trade has reportedly surpassed KSh340 billion, equivalent to more than £2 billion, while the two countries pursue a broader partnership spanning trade, investment, technology, infrastructure, climate and security.
Digital Trade Becomes the Next Phase of UK-Kenya Ties
Baugh revealed that the two countries had begun negotiations on a Digital Trade Agreement during an interview discussing the progress of the bilateral relationship.
According to the original announcement of the talks, the proposed pact is expected to make it easier for businesses to operate across the two markets and support Kenya’s development as the “Silicon Savannah.”
While the final scope of the agreement has not yet been published, digital trade agreements can address issues such as electronic transactions, digital contracts, paperless trading and the wider regulatory environment for technology-enabled commerce.
For Kenya, the negotiations could help local technology companies and digitally enabled businesses access deeper international commercial relationships. For UK companies, a clearer digital trading framework could provide opportunities in one of East Africa’s largest technology and innovation markets.
The talks build on the UK-Kenya Strategic Partnership agreed in July 2025, which identified sustainable economic growth, science and technology, security, climate and people-to-people relations among its priorities.
Bilateral Trade Moves Beyond £2 Billion
The digital negotiations come as the wider economic relationship continues to expand.
Baugh said bilateral trade had exceeded KSh340 billion, or £2 billion, for the first time, while British companies employ approximately 250,000 Kenyans. Projects linked to the wider partnership are also expected to support more than 100,000 direct and indirect jobs.
When the new Strategic Partnership was announced in 2025, UK-Kenya trade was valued at £1.8 billion, demonstrating the importance both governments had already placed on expanding the commercial relationship.
The partnership also included a pipeline of trade and investment initiatives expected to generate significant economic activity, covering sectors including infrastructure, financial services, engineering and technology.
A digital trade framework could complement those investments by addressing the practical challenges businesses face when products and services are delivered electronically across national borders.
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Existing Trade Deal Provides a Foundation
The proposed digital agreement would build on an existing formal trade relationship between Kenya and the UK.
The two countries already operate under the UK-Kenya Economic Partnership Agreement, which provides immediate duty-free and quota-free access to the UK market for qualifying Kenyan goods.
That arrangement is particularly important for Kenyan exports including agricultural and horticultural products. The proposed digital agreement would potentially extend the commercial relationship further into the services, technology and e-commerce economy.
Unlike traditional trade agreements, which often focus heavily on tariffs and physical goods, modern digital arrangements can target barriers affecting online transactions and digitally delivered services.
This shift reflects the increasing importance of technology to Kenya’s economy, where mobile payments, fintech, e-commerce and digital services have become major areas of innovation.
Digital Inclusion Could Broaden the Economic Impact
The UK is also supporting digital literacy and access initiatives that Baugh said are expected to reach more than 200,000 people and businesses, with particular attention to women-led enterprises and persons with disabilities.
Expanding digital access could increase the number of Kenyan businesses capable of benefiting from deeper cross-border digital trade. Small and medium-sized enterprises can use online platforms to reach customers internationally without building the physical distribution networks traditionally required for foreign expansion.
However, the eventual commercial impact will depend on the final terms negotiated by the two governments and how effectively businesses can use the resulting framework.
Key issues in any modern digital trade relationship can include regulatory compatibility, cybersecurity, consumer confidence and the ability of smaller companies to participate in cross-border markets.
Technology Joins a Broader Investment Partnership
Digital trade is only one part of the expanding UK-Kenya relationship.
The two countries are also cooperating on infrastructure investment, climate finance, renewable energy, security, artificial intelligence and cybersecurity. The 2025 Strategic Partnership was designed as a five-year framework intended to mobilise investment and deepen collaboration across these areas.
The proposed Digital Trade Agreement could now provide a more focused framework for the technology-driven part of that relationship.
For Kenya, a successful agreement could support its ambitions to become a leading destination for African digital investment and innovation. For the UK, it could strengthen access to a major East African economy and create new opportunities for technology, financial and professional services companies.
The negotiations are still at an early stage, and their significance will ultimately depend on the provisions contained in any final agreement. However, the opening of talks signals that digital commerce is becoming an increasingly important pillar of the economic relationship between Kenya and the United Kingdom.
Sources: Capital FM / UK Government
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