Record Growth Deepens Economic Ties

Bilateral trade between Kenya and the United Kingdom has reached a historic high, crossing the KSh 340 billion (£2.1 billion) threshold for the first time, according to official data released on Wednesday, 5 November 2025 EAT. The figures, published by Kenya's Ministry of Trade and corroborated by the UK's Department for Business and Trade, cover the year ending in the second quarter of 2025 and represent an 11.9% increase in the total value of goods and services traded compared to the previous year.

This significant milestone is largely attributed to a robust 14% surge in Kenyan exports to the UK, alongside an 8% rise in UK exports to Kenya. The announcement comes just months after President William Ruto's official visit to London in July 2025, where he met with UK Prime Minister Keir Starmer to sign a renewed five-year Strategic Partnership (2025–2030) aimed at doubling trade volumes and deepening cooperation in security, technology, and climate action.

Agricultural Exports Lead the Charge

Kenya's agricultural sector has been the primary engine of this export growth. According to the Ministry of Trade, exports of animal and vegetable products grew by 15.6% to KSh 28.7 billion. The beverage category, which includes Kenya's world-renowned coffee and tea, saw a 12.8% increase, reaching KSh 24.3 billion. Horticultural products, particularly cut flowers, remain a cornerstone of this trade relationship, with Kenya supplying a significant portion of the UK market. In total, Kenya exported goods worth KSh 63 billion and services valued at KSh 71.5 billion during the review period.

The positive figures underscore the benefits of the Kenya-UK Economic Partnership Agreement (EPA), which was ratified in March 2021 to ensure Kenyan goods continue to have duty-free and quota-free access to the UK market post-Brexit. This agreement has been crucial for protecting jobs and providing certainty for Kenyan farmers and exporters who faced potential tariffs of up to 8% on key products like flowers.

On the other side of the ledger, UK exports to Kenya rose to KSh 134.6 billion, up from KSh 124 billion the previous year. The leading UK exports included mechanical power generators (up 18.3%), refined oil, and vehicles.

Strategic Partnership and Future Investments

The recent trade growth is a direct outcome of the strategic partnership framework established during President Ruto's visit. That agreement aims to expedite flagship projects, including the KSh 30 billion Nairobi Railway City, and mobilize significant UK investment in Kenya's priority sectors. As part of the renewed partnership, the UK has committed to supporting Kenya's development with a focus on infrastructure, green energy, and digital transformation.

Further cementing Nairobi's role as a regional financial hub, Lloyd's of London is set to establish a regional underwriting office in the city, a move expected to enhance economic resilience by giving local businesses better access to specialized risk solutions. The UK also remains a key development partner, with British International Investment (BII) recently providing a $100 million facility to KCB Bank Kenya to increase lending for climate projects and women-led enterprises.

Dr. Ed Barnett, Chargé d'Affaires at the British High Commission in Nairobi, stated that the two nations are actively working to break down remaining trade barriers. Similarly, Trade Principal Secretary Dr. Regina Ombam noted that the growth underscores a strengthening economic partnership and that Kenya aims to expand its export base through value addition and branding.

Implications for Kenya and East Africa

The deepening trade relationship provides a significant boost to Kenya's economy, supporting thousands of jobs in agriculture and logistics while fostering growth in the financial services and technology sectors. The success of the bilateral EPA, however, has raised discussions about regional integration. Kenya pursued the agreement independently after consensus within the East African Community (EAC) stalled, a move that has created complexities with the bloc's common external tariff. Analysts suggest that managing the partnership carefully will be crucial to ensure Kenya's growth complements, rather than fragments, East African economic coherence.

Nonetheless, the record trade figures signal a period of strong and mutually beneficial economic engagement. With a clear strategic framework in place and a shared goal to double trade by 2030, the Kenya-UK partnership is poised for continued expansion, promising further opportunities for Kenyan businesses on the global stage.