Kenya and UK Strengthening a Modern Trade Partnership

By Robai Ludenyi,

Kenya and the United Kingdom have a strong historical and economic relationship, but business leaders and diplomats say both sides must take deliberate steps to deepen trade, unlock investment and grow jobs faster as global competition for investment intensifies.

The UK is positioning itself as more than just a traditional donor to Kenya. Instead, British officials describe the relationship as a modern investment partnership grounded in trade, innovation, and long‑term growth. More than 150 British companies already operate in Kenya, employing over 250,000 people and contributing significantly to tax revenues. Bilateral trade recently topped GBP 2 billion (about Sh340 billion) the highest in years signaling growing commercial engagement between the two economies.

Kenyan exports to the UK including tea, coffee, fruits and vegetables, have increased sharply in recent years, especially under post‑Brexit trade agreements that allow Kenyan goods duty‑free access to the UK market. Latest data shows that Kenya’s total trade with Britain reached near record levels, driven particularly by a strong rise in exports.

Despite these gains, British investors have pointed out persistent challenges in Kenya’s business environment. Issues such as high and unpredictable energy costs, regulatory uncertainty and complex tax rules make long‑term planning harder for firms operating locally. These structural hurdles have led some companies to scale back or exit, not because they do not see value in Kenya, but because they need more predictable and supportive conditions to invest and grow.

To address this, both governments and private sector groups are using forums such as the Kenya‑UK Business Forum to engage in frank discussions about bottlenecks and opportunities. These dialogues are focused on creating a more efficient, transparent and investor‑friendly environment that could help attract more capital, spur job creation, and encourage technology transfer.

Kenya’s strategic role as East Africa’s largest economy and a gateway to a region projected to contribute nearly a third of Africa’s GDP by 2040 positions the country as a potential investment hub not just for the UK but for global firms seeking access to wider African markets.

British officials have also signalled interest in new partnership areas, including digital trade, innovation ecosystems and sustainable business initiatives. There are ongoing talks about potential agreements on digital services and innovation, reflecting both countries’ interest in 21st‑century economic transformation.

For Kenya, strengthening the business environment, improving regulatory clarity, supporting infrastructure reliability and deepening market access could help unlock even more trade and investment. For the UK, this partnership is seen as an opportunity to support mutual prosperity while nurturing dynamic industries and jobs on both sides.

Read Also: UK–Kenya Trade Hits KES 350 Billion as First-Ever UK–Kenya Business Forum Accelerates a Modern Economic Partnership