Kenya and India are set to negotiate a new trade deal as Nairobi seeks to continue elevating ties with its largest business partners worldwide.

 

Prime Cabinet Secretary Musalia Mudavadi, also the Foreign and Diaspora Affairs Cabinet Secretary, said the two sides will begin talks on a trade agreement aimed at enhancing business ties and improving commerce.

He spoke at the residence of the Indian High Commissioner in Nairobi during the 77th celebrations of the Republic Day, commemorating the day when India gained its independence constitution.“We are pleased that both countries will commence negotiations on a trade agreement that will enhance market access and unlock greater investment flows,” Mudavadi said.“Bilateral trade has shown strong and consistent growth, indicating that there is immense potential for deepening the Kenya-India trade to reach a mutually favourable trade balance.

India is among Kenya’s biggest trading partners. Others include China, the United Kingdom, the European Union, Uganda, Pakistan and the United States. According to available statistics, trade volumes between India and Kenya reached $3.351 billion in 2024, with Kenya importing goods worth $3.175 billion and exporting $176.34 million, signalling an imbalance.

Mudavadi didn’t provide timelines for negotiations. But he suggested Kenya’s continued plan to elevate trade with its key partners. Kenya already negotiated deals with the European Union and the United Kingdom. It is pushing for a bilateral agreement with the US, in addition to the Africa Growth Opportunity Act (Agoa), which Washington has signaled to renew and allow some African countries, like Kenya, special privileges to export to the US.

This is to be an interim framework meant to allow preferential trade between Kenya and China as the two countries negotiate an envisaged economic partnership agreement, Foreign Affairs PS Korir Sing’oei said.“Equally, we have exchanged our respective tariff schedules – specifying the products that will enjoy preferential treatment as well as agreed on the applicable rules of origin.”Beyond trade, Mr Mudavadi said India is emerging as one of the world’s largest democracies and as the fourth-largest economy means it is an influential partner to be close to. Both India and Kenya share the Indian Ocean ,where maritime security is a mutual concern, Mudavadi said.

India, Mudavadi said, has backed the African continent’s voice on the international stage. Indian Prime Minister Narendra Modi advocated for a permanent African Union membership in the G20 when he chaired the group in 2023. Mudavadi also said India has been a vocal supporter of Kenya’s hosting of the United Nations Office at Nairobi, the United Nations Environment Programme and UN-Habitat.

India’s High Commissioner to Kenya, Adarsh Swaika, said India will continue to push for values for the Global South, as reflected in the Republic Day, commemorating the adoption of its constitution in 1950.

“That moment was not just the creation of a legal document, but the embodiment of a civilisational choice: to be governed by democracy, equality, justice, and the rule of law,” he said.

He noted that India’s democratic experience closely resembles Kenya’s own history and wants to share its progress in tech and innovation.“India now hosts one of the world’s largest startup ecosystems, accounts for nearly half of global real-time digital payments and remains a critical supplier of affordable medicines worldwide, with more than 50 per cent of Kenya’s pharmaceutical imports being sourced from India,” he said.→hkimuyu@ke.nationmedia.com

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