Kenya has finalised negotiations on a bilateral trade agreement with China, according to President William Ruto, marking a step towards expanded market access and export growth.
Speaking at an investment conference, President Ruto said the deal would build on earlier terms granting duty-free access to the majority of Kenyan exports, as Nairobi seeks to address a trade imbalance with Beijing.
The agreement reflects Kenya’s broader economic strategy of strengthening ties with both China and the United States, while maintaining macroeconomic stability and attracting foreign investment.
• Up to 98% of Kenyan exports expected to receive duty-free access to China
• Foreign direct investment surpassed $2 billion in 2025, rising over 15% year-on-year
• Kenya continues parallel trade negotiations with the United States.
Bilateral trade between Kenya and China remains significantly imbalanced, with Kenya consistently importing far more than it exports.
In 2025, imports from China were estimated at over $4 billion, while Kenyan exports remained below $300 million, resulting in a multi-billion dollar trade deficit driven by strong demand for Chinese manufactured goods.
The imbalance reflects structural trade patterns: Kenya primarily exports low-value agricultural and raw materials, such as tea, coffee, and minerals, while importing higher-value machinery, electronics, and industrial inputs.
Although expanded duty-free access is expected to support export growth, economists note that narrowing the gap will depend on diversification, value addition, and improved competitiveness in the Chinese market.
ℹ️ Reuters
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