Kenya is moving to unlock a Ksh271 billion trade opportunity with India through a proposed free trade agreement. The plan targets a widening trade imbalance and aims to boost exports significantly.
Musalia Mudavadi hinted at the agreement during an event at Sri Kalyana Venkateswara Temple on April twelve. He said Kenya should elevate its cooperation with India by pursuing a formal trade agreement.
Mudavadi explained that Kenya has already engaged in similar trade discussions with partners like the European Union and the United Arab Emirates. He noted that the country is also exploring bilateral trade arrangements with the United States to expand its global reach.
The proposal signals a shift toward deeper economic ties between Kenya and India through structured trade frameworks. The government now aims to formalize rules that directly influence businesses, traders, and consumers across both economies.
At the center of the talks lies a significant trade imbalance between the two countries. Kenya exports goods worth about Ksh19 billion while importing products valued at approximately Ksh262 billion annually.
Kenya mainly exports agricultural products and raw materials including tea, coffee, soda ash, vegetables, and metal scraps. Tea has recently emerged as a leading export alongside vegetables, inorganic chemicals, and hides and skins.
On the import side, Kenya sources petroleum products, pharmaceuticals, machinery, and rice from India. Other imports include automobiles, plastics, iron and steel products, and textiles driven by demand for affordable goods.
Mudavadi emphasized that the agreement would align India with other strategic partners such as China. Kenya already enjoys trade cooperation frameworks under initiatives like the Forum on China Africa Cooperation.
He also recognized the Indian community in Kenya for its contribution to sectors like business, education, and healthcare. The government now seeks to leverage these ties to strengthen long term economic growth.
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