A year after Kenya and the United Kingdom (UK) renewed their Strategic Partnership for 2025-2030, bilateral trade and investment have posted steady growth.
Latest data update from Kenya-UK Trade and Investment Factsheet shows total trade between the two countries reached £2.1 billion (Sh360.47 billion) in the four quarters to the end of 2025, up 3.1 per cent from the previous year.
Total UK exports to Kenya increased by 6.3 per cent to £788 million (Sh135.29 billion), while imports from Kenya rose by 1.3 per cent to £1.3 billion (Sh223.15 billion).
Consequently, the UK's trade deficit with Kenya narrowed to £541 million (Sh92.87 billion) from £571 million (Sh98.02 billion) a year earlier, reflecting stronger British exports and sustained Kenyan sales into the UK market.
Services continued to account for the larger share of bilateral trade.
Of the UK's exports to Kenya, £423 million (Sh72.61 billion) comprised services, while £365 million (Sh62.64 billion) comprised goods. Service exports grew by 10.2 per cent, outpacing the 2.2 per cent growth in goods exports.
On the import side, the UK bought £813 million (Sh139.56 billion) worth of services from Kenya and £516 million (Sh88.57 billion) in goods. While imports of Kenyan goods increased by 4.7 per cent, service imports dipped slightly by 0.7 per cent.
Investment ties also strengthened during the review period, according to the report.
UK foreign direct investment (FDI) stock in Kenya climbed by 25.2 per cent to £781 million (Sh134.10 billion) at the end of 2024, an increase of £157 million (Sh26.95 billion) from the previous year.
Kenyan investment in the UK also edged up to £19 million (Sh3.26 billion), representing a 5.6 per cent increase.
The latest figures provide an early indication of progress under the Kenya-UK Strategic Partnership signed on July 2, 2025, by UK Foreign Secretary David Lammy and Kenya's Prime Cabinet Secretary and Cabinet Secretary for Foreign and Diaspora Affairs, Musalia Mudavadi.
“The new Kenya-UK Strategic Partnership 2025-2030 will provide a comprehensive framework to progress our shared objectives, strengthening the bilateral relationship and delivering growth for both our countries,” Mudavadi said during the deal signing last year in London.
Among the flagship commitments under the five-year agreement are plans to explore a Digital Trading Agreement, double bilateral trade by 2030, and mobilise at least £200 million (Sh34.33 billion) for climate adaptation projects in Kenya.
The partnership also backs high-value investments, including the Nairobi Railway City project, valued at up to £150 million (Sh25.75 billion) and expected to create about 10,000 direct and indirect jobs.
Other priorities include expanding cooperation in artificial intelligence, science and technology, supporting the entry of Lloyd's of London into Nairobi's insurance market, and strengthening collaboration on cybersecurity, counter-terrorism, illicit finance and regional security.
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