(Nairobi) – The Ministry of Investments, Trade and Industry has hosted a key trade and investment forum to strengthen the business relationship between Kenya and the United Arab Emirates (UAE). The initiative aims to create new opportunities for growth in both countries and foster stronger economic partnerships.
Speaking at the forum on Monday, Cabinet Secretary for Investments, Trade and Industry, Salim Mvurya, emphasized the importance of this trade mission, which provides a platform for exploring ways to enhance business and investment relations. Mvurya credited the strong diplomatic ties between Kenya and the UAE as the foundation for the forum’s success. These relations have been growing since 1982, when Kenya first opened its embassy in the UAE. The UAE reciprocated by establishing its embassy in Nairobi in 2012.
Over the years, the UAE has become an important partner for Kenya, both politically and economically. Mvurya highlighted that the two countries have signed numerous agreements aimed at improving their economic and commercial ties. This partnership has played a crucial role in boosting trade between the two nations.
The UAE is Kenya’s sixth-largest trading partner. Mvurya pointed out that trade between Kenya and the UAE has been growing significantly. From 2013 to 2022, two-way trade increased by 169%, growing from Sh140 billion to Sh383.68 billion. In 2022 alone, Kenya exported goods worth USD 373.6 million to the UAE and imported goods worth USD 3.45 billion.
Kenya’s exports to the UAE include products like tea, mutton, fruits, vegetables, and cut flowers. The UAE, on the other hand, exports items such as petroleum oils, polymers, telephone sets, and cement clinker to Kenya. Mvurya explained that while the balance of trade currently favors the UAE, with Kenya experiencing a negative trade balance of USD 3.08 billion, efforts are underway to improve this situation.
| Trade Data Between Kenya and UAE | 2022 Export Value | 2022 Import Value |
|---|---|---|
| Kenya Exports to UAE | USD 373.68 million | |
| Kenya Imports from UAE | USD 3.45 billion | |
| Total Trade Value | USD 3.83 billion |
In light of this growth, Mvurya emphasized that the government is focused on deepening trade relations with the UAE. One key development is the ongoing negotiations for the Kenya-UAE Comprehensive Economic Partnership Agreement. Once finalized, this long-term trade framework is expected to further strengthen business ties between the two nations.
The forum also highlighted the critical role the private sector plays in driving economic transformation. Mvurya urged both private and public sectors to work closely together to stimulate investment, industrialization, and economic activities. He also pointed out that Kenya’s strategic location as a gateway to Eastern and Central Africa makes it an attractive investment destination. With access to a market of over 220 million people in East Africa and 600 million people in COMESA, Kenya offers immense opportunities for UAE investors.
Mvurya encouraged UAE investors to consider sectors such as manufacturing, livestock development, tourism, energy, housing, infrastructure, construction, and aviation services as potential areas for investment in Kenya. He praised the growing confidence that UAE investors have shown in Kenya, noting the successful cooperation between the private sectors of both countries.
Additionally, Mvurya called for increased collaboration between business associations and councils in both countries to enhance business engagements. He said that forums like this one are critical in opening up new markets, encouraging trade and investment, and facilitating the transfer of technology between Kenya and the UAE.