Kenya: An East African hub for intra-African trade

Key information: Kenya
Key information: Kenya

Kenya signed the African Continental Free Trade Area (AfCFTA) agreement in 2018 and was one of the first two countries, along with Ghana, to ratify the AfCFTA. Trade under the AfCFTA officially began on 1 January 2022.

An East African hub for intra-African trade

Kenya has been in the lead on the African continent to drive negotiations forward and in implementing the AfCFTA agreement, publishing its AfCFTA implementation strategy (2022-2027) in August 2022. The strategy seeks to leverage the single African market to grow Kenya’s trade and investment in Africa, support structural transformation, and foster economic growth and sustainable development.

 

Kenya’s AfCFTA strategy identifies priority export products and sectors for goods and services, aligned with its national development goals and aspirations.

 

Historically, Kenya has been an active player in international trade. It is a member of the World Trade Organization and was a member of its predecessor, the General Agreement on Tariffs and Trade. Kenya is also an active member of regional economic communities within Africa and has ratified multiple free-trade agreements or economic partnership agreements with other countries. 

Here is how GIZ is assisting Kenya to implement the AfCFTA:

Providing comprehensive support to the Ministry of Investments, Trade and Industry’s AfCFTA Chief Negotiator and his team, along with other involved government negotiating teams, to develop national positions or policy briefs across all trade disciplines ahead of continental negotiation rounds
Supporting the development of regulatory frameworks for trade in services in three (3) prioritised sectors: communication; financial services; and transport services
Supporting the documentation and publication of Kenya’s schedule of specific commitments to inform stakeholders on the terms, limitations or conditions of access to Kenya’s services market e.g., business, and tourism services
Helping train the Kenya Revenue Authority and other relevant authorities on (to apply the new AfCFTA) rules of origin
Training on AfCFTA Protocols including; trade in goods; trade in services; intellectual property rights (IPR); digital trade; competition; and women and youth with a view to upskill stakeholders on regulatory developments

In 2020, the Assembly of Heads of States and Government of the African Union called for the negotiation of e-commerce under the AfCFTA, acknowledging the critical role of emerging and advanced technologies in fostering innovation and trade. They emphasized the need for the ethical, trusted, safe, and responsible adoption of such technologies to harness digital innovation and deepen economic integration through harmonized rules and standards supporting digital trade.

 

Throughout 2023 and 2024, GIZ Kenya has actively supported the Ministry of Investments, Trade, and Industry, alongside other ministries and agencies, in analyzing the draft text for the digital trade protocol and its annexes. Our text-by-text analysis support was instrumental in developing a strong national position for continental negotiations, significantly improving trade regulations. This support has culminated in a comprehensive protocol that proudly bears Kenya’s footprint. 

Supporting national implementation of the Action Plan for Boosting Intra-African Trade
Supporting the private sector and civil society organisations to develop capacity for advocacy
Helping build the competitiveness and growth-readiness of the private sector, especially small and medium-sized enterprises, for enhanced participation in the AfCFTA
Sensitisation and training on customs tariff classification, rules of origin, technical barriers to trade, sanitary and phytosanitary measures, and other relevant trade policy topics
Creating awareness and supporting women and young entrepreneurs on the AfCFTA
Supporting the Zambian negotiating team through capacity building for Phase II and Phase III negotiations
“A major enabler of continental economic take-off requiring considerable investment is infrastructure. Low infrastructural connectivity is a serious impediment of our ambitions to realise Africa’s full trade and economic growth potential.”
– Kenya President William Ruto, opening the Private Sector Dialogue on the African Continental Free Trade Area in Nairobi in May 2023

Facts and figures

Kenya’s intra-African trade:

Exports (2022):
USD 3 billion

Imports (2022):
USD 2.3 billion

Our partners in Kenya

Ministry of Investments, Trade and Industry

Kenya Revenue Authority

Kenya Trade Network Agency

Kenya Investment Authority

Kenya Export Promotion and Branding Agency

Kenya Association of Manufacturers

The East African Tea Trade Association

Shippers Council of Eastern Africa

Federation of East African Freight Forwarders Associations

SMEs and other Kenyan exporting companies

Skip to content